When Cap-Weighted Small-Cap Funds Own “Meme” Stocks By Jeff Weniger, CFA, Head of Equity Strategy GameStop may be out of the news cycle, but it is not out of portfolios. The stock was on offer for as little as $3.85 per share last July, before Reddit’s “Wall Street Bets” message board got its hands on the heavily shorted stock, creating a squeeze that sent its price up several hundred points. That made GameStop a sudden heavyweight in many indexes, a condition that lasts to this day. Posting Internet memes on it and other troubled companies like AMC Entertainment, the movie theater chain, a cultural phenomenon was whipped into such a frenzy that it became the lead story in the Wall Street Journal and in Twitter finance circles. This was especially so as the phenomenon rode a wave of anti-Wall Street sentiment, bringing down an obscure hedge fund—Melvin Capital—that was short the shares.