Billionaire hedge fund investor Carl Icahn reportedly lost almost $2 billion last year in dumping his holdings of Hertz as the US rental car company filed for bankruptcy.
While Wall Street was selling, the shares were bought on the cheap by independent investors in coordinated action using social media. While hedge funds lost billions of dollars, the bet has paid off handsomely for small investors, as Hertz is now out of bankruptcy.
According to Max Keiser, Wall Street has now been forced to follow social media trends in evaluating stocks.
“Robinhood traders [who] were paying 10, 20, 30 cents for these shares are going to get seven or eight bucks for them out of bankruptcy. It’s a huge win and this is really a changing of the guard… It shows that we’ve entered a new era,” says Keiser.
For more stories on economy & finance visit RT’s business section