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Superstonk DD Summary: Blackrock Bagholders Inc.



BlackRock, a global investment management company, has faced allegations of operating in a shadow market with Citadel Securities and Bridgewater Associates and contributing to market manipulation. BlackRock has a significant portfolio of GameStop (GME) stocks, and some have speculated that Citadel may have shorted a large portion or even all of BlackRock’s GME portfolio, leaving BlackRock to “hold the bag.”
To investigate GME’s major investors, it is necessary to understand SEC Schedule 13G and 13D forms, which are used by institutional investors to report their ownership of a company. If an investor holds between 5% and 15% of a company, they must file a Schedule 13G form within 45 days of the end of the year. If an investor’s ownership exceeds 10%, they must file a Schedule 13G within 10 days of the end of the month in which their ownership surpassed 10%.
A review of GME’s 13Fs from 2020 reveals a mix of bullish and bearish investors. Some bearish investors, including Dimensional Fund Advisors, Vanguard Group, and State Street Corp, did not buy the dip and instead sold their GME stocks throughout the year. In contrast, other investors, including Ryan Cohen, Maverick Capital, and Fidelity Management and Research Company, increased their GME holdings significantly in 2020.
It is important to note that these investments do not necessarily indicate collusion or market manipulation, but they do raise questions about the motivations behind BlackRock’s significant GME portfolio and the potential role of Citadel Securities in shorting those stocks.



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