10 Facts About Reddit Traders vs Wall Street Guys You Need to Know

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4. Hedge Funds

Hedge funds are financial partnerships that utilize pooled funds for their investors to earn returns. Those who decide what to do with the pooled funds are the managers of these hedge funds. To make money, they employ various strategies, including short selling stocks.

Due to Redditors messing with their speculative investments, certain hedge-fund titans have lost billions. After incurring such a huge loss, they pulled out of the fight. With a USD2.75 billion bailout, other hedge funds had to come in and rescue companies like Melvin Capital.

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