- 'Deep value' investor Keith Gill has come across better than Vlad Tenev, boss at Robinhood in the first stage of the GameStop enquiry
- Grandstanding from the lawmakers has failed to bring clarity to the events
- US markets look set for a weak close
- Bitcoin gains more institutional support
“I’m not a cat”. If there are aliens on Mars, I think this would be a suitable gambit to commence our interplanetary communication. Yesterday we reached a moment of meme perfection when Keith Gill, aka Roaring Kitty, aka DPV (look it up), told the House Financial Services Committee that he is no feline, echoing the instantly famous Texas lawyer’s Zoom fail last week. He also stressed he is not an institutional investor, nor a hedge fund. The politicians were instantly on side. GameStop (US: GME) shares popped higher as he started talking and set out his fundamental bull thesis on GME, but by the close it ended the day down another 11 per cent to $40.
So, what have we learned from the hearing? Gill comes out of this rather well; intelligent, well-informed, a true deep value investor. But he still faces a class action lawsuit. The focus point for lawmakers’ ire was Robinhood and its rather uncomfortable-looking boss Vlad Tenev, who was forced to admit to making mistakes. A $3bn margin call sounds like Robinhood wasn’t prepared for this kind of event. Melvin Capital’s Gabe Plotkin admitted that in future you won’t see the kind of enormous short interest in single stocks like there was on GME before the squeeze. Real time settlement will one day happen, but not yet.