From Fortune · Morgan Chittum · · 1m 40s
Jane Street doubled Nvidia bet before CEO scandal
The quantitative trading firm held 23.8 million Nvidia shares worth 5.44 billion dollars as of late September, just weeks before Jensen Huang's resignation over affairs.
In brief
The quantitative trading firm held 23.8 million Nvidia shares worth 5.44 billion dollars as of late September, just weeks before Jensen Huang's resignation over affairs. Jane Street more than doubled its Nvidia holdings to 23.8 million shares worth 5.44 billion dollars in the third quarter, before the stock fell…
Jane Street doubles down on Nvidia
The quantitative trading firm held 23.8 million Nvidia shares worth about 5.44 billion dollars at quarter end, more than double its 11.8 million shares worth 2.4 billion dollars in the second quarter.
Timing raises questions about knowledge
The regulatory filing shows Jane Street's positions as of September thirtieth, just over six weeks before Jensen Huang resigned as Nvidia CEO following reports of extramarital affairs.
Nvidia shares plummet after scandal
Nvidia shares fell nearly thirteen percent over five days following Huang's resignation, reaching a seventeen month low intraday Thursday. The scandal involved affairs including one with a woman U.S. authorities suspect of spying for China.
Filings leave key questions unanswered
The thirteen F filing does not reveal exactly when Jane Street purchased the shares or how much the firm has gained or lost.
Options complicate the picture further
Jane Street holds large amounts of puts and calls reported using underlying share values rather than option market values. These notional figures can make positions look far larger than sums actually invested.
Huang admits infidelity, Kress takes over
Jensen Huang stepped down Thursday after more than three decades leading Nvidia, which he cofounded in nineteen ninety three.Chief Financial Officer Colette Kress was named interim CEO.Huang admitted he had been unfaithful to his wife.
“I had been unfaithful to my wife”
At a glance
Jane Street more than doubled its Nvidia holdings to 23.8 million shares worth 5.44 billion dollars in the third quarter, before the stock fell nearly 13 percent following CEO Jensen Huang's resignation over extramarital affairs.
