Value investor Bill Miller says his company sold GameStop holdings during the initial Reddit frenzy
Value investor Bill Miller told CNBC on Tuesday that one of his company’s funds sold its GameStop holdings during the Reddit craze that began earlier this year.
“We had GameStop in our high-quality product, and I think our cost for it was $ 4 or so,” Miller said in an interview on The Exchange. “When it got in the ’70s when we sold it, it went to $ 400, of course.”
GameStop stocks eventually pulled back sharply from their January 28 high of $ 483 and fell below $ 50 at one point in February as the initial headline-making short squeeze ended.
However, the stock remained both volatile and in focus as the video game retailer announces steps in its digital transformation. GameStop shares closed Tuesday 3.55% to $ 158.53 apiece, for a market cap of around $ 11.1 billion.
The stock is up around 740% since the start of the year and more than 2,700% in the past 12 months. At this point last year, GameStop shares were trading below $ 5.
Miller, founder and chief investment officer of Miller Value Partners, said his firm has stayed away from GameStop and other so-called meme stocks popular with investors active on online news forums.
“They’re of no interest right now because they’re in the grip of the Reddit crowd and you can’t analyze them the way you can with other things because price is dominating fundamentals.” said Miller, who ran a fund that beat the S&P 500 for 15 straight years while working at Legg Mason.
Miller also told CNBC he remained bullish on Bitcoin, saying that demand continues to outperform supply of the world’s largest cryptocurrency by market value. “That’s all you really need to know, and that means it can go higher,” he said.
Subscribe to CNBC Pro to read Bill Miller’s top stocks.