Welcome back to the channel everyone today, i want to tell you about how ken griffin lied about melvin capital. Obviously we, the retail investors, know that we're not responsible for these pension funds losing money, but today i want to show you how ken griffin actually outright lied, because these pension funds didn't lose very much money at all, from investing in melvin, so stay tuned and let's Make some money - and now i want to dive straight in with the key information. So there's this article from pensionpox that says i can tell you that the reddit wall street best crowd actually helped the ontario teachers pension plan as it sold. Its 16.4 stake in u.s mall owner makarich for 500 million dollars after the company's shares, soared according to regulatory filings obtained by bloomberg news.

It says good move. The teacher's largest stake in makarich was dragging down its portfolio returns for years and it needed to dump the shares, but the teachers actually invest in melvin capital. The article author says, i don't know just like i don't know if cdpq or cppib did and to be honest, i don't really care if they lost money there. It will sting, but in terms of their overall hedge fund portfolio, it's meaningless over the long run, but he said one thing i would like is for canada's large sophisticated pensions to engage with the sec, to advise them on drafting better regulations to make sure that hedge Funds or bank prop trading desks are not engaging in questionable activities like over shorting a stock with a low flow.

They said if anything, the gamestop saga has exposed the nonsense going on in the stock market, and that stuff not only turns small and large investors off, but it scares them as well. The sec needs to make sure everyone follows the rules and that everything is kosher, but so what does this author mean when he says in terms of their overall hedge fund portfolio, it's meaningless over the long run? Well, this report from the national association of pension funds says that uk pension funds currently only invest a small proportion of their assets into hedge funds, estimated to represent less than two to three percent of total investments. Now i think there are some larger pension funds over in the us that invest a greater portion of their total portfolio into hedge funds. But again most pension funds invest below 10 of their overall portfolio for most pension funds.

The majority of their money is invested into bonds and loan notes, it's invested into property and it's also invested into general s. P, 500 trackers. Only a small portion of an overall pension fund is invested directly into specific hedge funds and even then the two to three percent isn't invested into one singular hedge fund. It's spread between maybe five to ten different hedge funds and therefore a pension fund's direct exposure to melbourne capital is likely to only be one to two percent of their total portfolio, and any losses suffered by investing directly in melvin will likely be cancelled out by gains Generated elsewhere like gaining from the property market, for example.

Obviously, if a hedge fund makes a 50 loss on one percent of its assets, there's only a 0.5 percent loss on the entire portfolio and obviously, if it makes a seven percent gain elsewhere on their entire portfolio. Through investing in bonds and property well, overall, that's a 6.5 gain for the year. This section on the hedge fund industry today says that it's estimated that around 1 trillion is currently invested in more than 7 000 hedge funds around the world. The most developed market has obviously been in the us, but if you take one trillion dollars and divide that by 7 000, that means there's give or take a maximum of only 142 million dollars invested into one singular hedge fund.

Okay, the entire collective pension market has likely only invested 142 million dollars directly into melvin capital, which is obviously a very small portion of their overall fund size, because at one point, melvin was worth over 10 billion dollars and therefore pension funds actually make up a very, Very small portion of melvin capitals overall fund size and again, if we look a little deeper on wall mine, it says what kind of clients does melvin capital management actually serve. It says the only and largest group of clients of melbourne capital management is pooled investment vehicles with seven clients and 5.98 billion dollars of assets under management. And again, if we look at this table here, we can see that pensions and profit sharing funds have actually invested. Quite heavily into hoskin partners and nwq investment management company, but looking at melvin capital management, their entire portfolio size is made up from these pooled investment vehicles, not from pension and profit sharing plans, and therefore it's actually possible that there's zero pension funds that are currently invested Into melvin capital, and therefore for ken griffin to say that teachers and other pension funds lost money by investing into melvin is factually incorrect.

Something else i found very very interesting on my searches is that gay plotkin was actually accused with ak committed insider trading and guys, if you haven't already be sure, to send it to me using the link in the description below to get up to seventeen thousand five Hundred dollars in free stocks, moomoo and food have also officially announced they do not accept payment for order flow and therefore mumu is brilliant for buying that amc. Stock. Moomoo was also recently awarded the best trading platform because it's incredibly easy to use, and it's very, very customizable. It says during his time at sec, capital which was owned and ran by steve cohen plotkin was the recipient of illegal insider information according to federal prosecutors.

Root. Has identified plotkin as the so-called portfolio manager b in the sec civil complaint against michael sternberg, a fellow sacpm who was arrested on charges that he traded dell's earnings based on insider information. Plotkin was allegedly forwarded, several emails by sternberg and others that contained insider information. I can't say that it really surprises me that gabe plotkin has been accused of insider trading or actually committed insider trading.

That's obviously why he was the perfect tool for ken griffin and steve cohen, and the perfect guinea pig for the gamestop at amc fiasco. Gay plotkin is obviously not afraid of getting his hands, dirty he's, not afraid of committing insider trading and therefore he's almost certainly not afraid of creating and holding synthetic shorts. And it also says that, subsequent to the gamestop short squeeze event, melvin capital disclosed that it's the target of at least nine separate lawsuits relating to its behavior during that period. Now, even though gay plotkin has now closed down melvin capital and is returning money to the investors, it doesn't make these lawsuits disappear or go away, and these lawsuits will very much still be investigated and pursued.

I also wanted to show you this clip from bloomberg. That shows just how deep ken griffin control actually reaches ken griffith's comments. John, i didn't see them all, but i know you were studying that carefully. Did we learn it? He has something interesting to say about retail traders and wall street bets going after a certain hedge fund yeah and how that wasn't nice, because it was about going after teachers, pensions which lit up twitter.

I have to say i didn't really fully resonate with me. Tom you're, so so political thank you to francine lacroix for bringing up that third rail of sensitivity. It's a great interview, just approach like that and just account to go deeper. I thought you did a brilliant job.

I'm gon na stay out of it, as is mr pharaoh, because we'd like to work one day right now, so i think jonathan hitler nail on the head there. Even he doesn't think that melvin capital is responsible for losing investor money, but he doesn't want to talk too much about it on bloomberg because, as tom says, they'd like to actually work on monday and not be fired over the weekend. Jonathan and tom clearly know that if they say anything negative about ken griffin like that, he can have them fired on the spot and potentially even killed, and therefore they basically won't say anything negative about ken griffin live on tv because they want to keep their jobs. And their lives, i think that's just ridiculous, just how deep the corruption goes and just how much control ken griffin has over the mainstream media and not just those rubbish news sources like market watch or the motley fool, but even the biggest forms of mainstream media.

Like bloomberg, cnbc and many others, but in terms of the wider market, the cio of one river asset management said: if we can't bounce after being down seven weeks in a row, something is seriously wrong. The cio said if we can't bounce after being down seven weeks in a row, something seriously wrong with this market, but you've got ta, get to number three or stage three in the market crash before the big bottom is in and the market is still stuck somewhere In step number two or in stage two of the market crash, therefore, the cio of one river asset management believes the market crash still has further to go before the bomb is reached and jerome powell said that achieving price stability and restoring price stability is an unconditional Need it's something we have to do, because really the economy doesn't work for workers or for businesses or for anybody without price stability. It's the bedrock of the economy really, and he said if that involves moving past broadly understood levels of neutral, we won't hesitate to do that. We will go until we feel we're in a safe place where we can say yes, financial conditions are at an appropriate place.

We see inflation coming down as mack 10 tweeted. This current sell-off is twice as fast as it was in 2008. Back in 2008, it took nine months and negative 15 to reach the layman moment and he says currently the market's down over 20 in only four and a half months, and he says it's soon enough to make 2008 seem like a good time, and i think this Chart or this graph really shows how the current downturn is faring and is shaping up compared to other recessions. In the past, i've tweeted saying 90 years of bear markets, visualized by magnitudes of declines and duration in trading days.

We can see here in red. This is the current downturn, which so far has lasted 96 days, which basically places its slap bang in the middle of all previous bear markets. Some bear markets have only lasted negative 25, only negative 20, but some have officially fallen all the way to negative 62 and some of these range between 30 and 40 trading days, like we saw back in 2020, but some have lasted up to 439 trading days, like We saw in world war ii or 1940 to 1942. Obviously i do expect this current downturn to continue to last, both in terms of magnitude of decline and in terms of the duration of trading days.

So far, i'm expecting the market to be down somewhere between 30 and 40 percent, but i may end up being surprised in the market may end up down 50 60 percent or even more, but in terms of amc as corey tweeted saying according to coming soon, industry. Experts project doctor strange in the multiverse of madness to end up with around 900 to 950 million dollars from the box office worldwide. So far, the doctor strange film has surprised 800 million dollars globally, with 342 million dollars from the domestic total and 461 million internationally and rotten tomatoes is also tweeted. Saying netflix is reportedly considering a 45-day theatrical release for rhian johnson's knives out too netflix is obviously released.

Saying their subscriber base is dwindling and films aren't performing as good as they used to so they're now, in discussions with movie theater change like amc to actually show films exclusively netflix's own original films exclusively in amc, cinemas and in other cinemas. This is probably something netflix needs to do to ensure they can bring back their customer base and ensure their films can gross more money. But it's also brilliant for amc, because it means that amc is winning and even netflix wants to show their films in amc cinemas. So guys be sure to leave a comment down below and ding that notification bell, because that way you'll be alerted.

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