In a dramatic turn of events, Antara Capital, a hedge fund backed by private equity giant Blackstone Inc., is winding down operations and liquidating its remaining investments.
The decision comes as founder Himanshu Gulati prepares to depart for a new role at Marshall Wace, leaving behind a trail of financial missteps and controversy that have reverberated across the investment community.
This development, reported by Bloomberg on May 2, 2025, has sparked discussions among investors, particularly those who have followed Antara’s aggressive short bets against companies like AMC Entertainment Holdings Inc. in 2023.
For many, the liquidation is seen as a form of poetic justice, with retail investors cheering the downfall of a fund that targeted their favorite stocks.
The Rise and Fall of Antara Capital
Launched in 2018 with $200 million in seed capital from Blackstone, Antara Capital initially positioned itself as a big player in the hedge fund space.
With approximately $2.8 billion in assets under management (AUM) at its peak and a small, exclusive client base of just 10 investors, the fund aimed to capitalize on complex, high-stakes strategies.
However, its aggressive tactics and risky bets led to mounting losses and liquidity issues, culminating in its decision to liquidate today.
The unraveling began over a year ago when Antara was forced to freeze redemptions on hard-to-sell assets as losses piled up, a move that signaled deep financial distress.
According to Bloomberg, the fund’s struggles were compounded by Gulati’s departure, which was announced earlier in April 2025.
His move to Marshall Wace, a well-established hedge fund, leaves Antara without its founding vision and leadership, accelerating its path to liquidation, according to the report.
The decision to wind down reflects a broader trend of hedge funds facing challenges in navigating volatile markets and investor expectations.
Antara’s Short Bets Against AMC
One of Antara Capital’s most high-profile moves was its massive short position against AMC Entertainment Holdings Inc., disclosed in 2023.
Antara took a bearish stance on the movie theater chain, betting heavily on a decline in its stock price.
This strategy involved selling short 380,900 shares of AMC and entering into swap agreements that would pay Antara $6.1 million.
The fund’s aggressive shorting tactics drew significant attention, particularly from AMC’s passionate retail investor base.
The short bets were part of a broader strategy where Antara also sold millions of shares of AMC’s preferred equity units, known as APE, at prices ranging from $1.59 to $1.60.
These moves were perceived by some investors as a betrayal, especially after Antara had initially acquired a significant stake in APE, raising expectations of support for AMC.
Instead, the fund’s pivot to shorting and purchasing put options signaled a bearish outlook, fueling massive distrust among retail investors.
Posts on X from 2023 reflect the outrage, with users like @GavinClimie calling Antara’s actions “disgraceful” and an “utter betrayal” to AMC and APE holders.
Antara’s shorting strategy was not an isolated incident but part of a pattern of high-risk maneuvers that ultimately backfired.
The fund faced lawsuits from AMC investors over alleged short-swing profits from its APE transactions, further tarnishing its reputation.
By 2024, as AMC’s stock hit an all-time low, Antara’s liquidity issues and declining returns were already becoming apparent, with posts on X noting the fund’s struggles alongside other firms that had bet against AMC.
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Another Karmic Shift?
For retail investors, particularly those who rallied behind AMC during the meme stock frenzy of 2021, Antara’s liquidation is a moment of vindication.
The AMC Apes, known for their fierce loyalty to the company and defiance against Wall Street short-sellers, have long viewed hedge funds like Antara as adversaries.
The news of Antara’s collapse has sparked a wave of sentiment on X, with investors expressing satisfaction at what they perceive as “karma” for betting against their beloved companies.
The sentiment is rooted in a broader narrative of retail investors challenging institutional power.
Antara’s short bets against AMC were seen as an attempt to profit from the company’s struggles during a challenging period for the movie theater industry.
However, AMC’s resilience, bolstered by its loyal investor base and strategic moves have frustrated Wall Street expectations.
As one X user, @Christalball93, noted in 2023, Antara’s swaps and short positions were a clear bet on AMC’s decline, a strategy that ultimately contributed to the fund’s own downfall.
Investors are now looking to other financial institutions that have taken similar short positions against AMC and other meme stocks, hoping for a ripple effect.
The collapse of Antara is seen as a warning to hedge funds engaging in aggressive shorting tactics, particularly against companies with strong retail support.
Posts on X suggest that retail investors are eager to see firms that “manipulate” or “bet against” their favorite stocks face similar consequences, reinforcing their belief in the power of collective action.
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Blackstone’s Role and the Broader Implications
Blackstone, which provided the initial backing for Antara, has remained relatively silent on the fund’s liquidation.
The private equity giant, known for its extensive investments across real estate, private equity, and credit, has been navigating its own challenges, including a slower-than-expected fundraising campaign for its flagship buyout fund and a push into new sectors like sustainability software and pet care.
The failure of Antara, however, represents a rather unusual misstep for Blackstone, which has otherwise maintained a strong track record in alternative asset management.
The liquidation also raises questions about the sustainability of hedge funds pursuing high-risk, high-reward strategies in an increasingly volatile market.
Antara’s reliance on complex derivatives and illiquid assets left it vulnerable to market shifts and redemption pressures, a cautionary tale for other funds.
As Blackstone continues to diversify its portfolio, including a new credit fund for retail investors set to launch in May 2025, the Antara saga may prompt a reevaluation of how it selects and supports its hedge fund partners moving forward.
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Looking Ahead
As Antara Capital liquidates its investments and fades from the financial landscape, its legacy will be defined by its bold but ill-fated bets, particularly against AMC.
For retail investors, the fund’s collapse is a symbolic victory, reinforcing their resolve to protect companies like AMC from institutional short-sellers.
The sentiment on X reflects a growing confidence among these investors, who see Antara’s downfall as a sign that the tide may be turning in their favor.
The broader financial world, meanwhile, will be watching closely to see if other hedge funds face similar pressures.
With market dynamics shifting and retail investors wielding increasing influence, the era of unchecked short-selling may be facing new challenges.
For now, Antara’s sinking ship serves as a stark reminder of the risks of overreaching in a market where loyalty and sentiment can be as powerful as financial fundamentals.
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