- Sender Company & Painters, a volatility hedge fund led by Adam Sender, has gained 30% this year thanks to bets for and against stocks popular on Robinhood, Bloomberg’s Sonali Basak reported Tuesday.
- Those stocks include Hertz,Nio, and Tesla, according to the report.
- Sender has also made a bet on big tech, which has boosted his fund’s returns.
- Read more on Business Insider.
One hedge fund has boosted returns this year by following favourite stocks on the Robinhood trading app.
Sender Company & Partners, a volatility hedge fund led by Adam Sender, has gained 30% this year, in part thanks to bets for and against stocks popular on the buzzy retail trading platform,Bloomberg’s Sonali Basak reported Tuesday.
Some of Sender’s bets included companies such as Hertz, which became a popular trade on the app in the midst of its bankruptcy woes. Sender also gained by placing bets on other companies liked by Robinhood users, such as electric automakers Tesla and Nio.
Retail investing has taken off amid the coronavirus pandemic, potentially spurred by people being stuck at home and looking for new forms of entertainment, according to the report.
The uptick in day trading has created “the late 90s type of environment I thrive on,” Sender told Bloomberg in reference to the tech bubble near the end of that decade.
Aside from bets inspired by Robinhood, Sender’s fund notched gains betting on the S&P 500 futures, Nasdaq futures, and big tech names including Apple,Microsoft,Nvidia,Paypal, and Amazon, according to the report.
Technology companies have lifted the broader market this year, and sent the Nasdaq to another record high close Monday.