Does Roaring Kitty Still Own GME Holdings Amid MassMutual's Fine?

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Sep. 17 2021, Published 11:52 a.m. ET

The Roaring Kitty saga isn't over yet. Keith Gill, who goes by the username "Roaring Kitty," influenced the retail trading meme stock movement for GameStop (NYSE:GME). He's still causing disruptions in the regulatory space. This time, Gill's former employer MassMutual is reaping the punishment.

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Does Roaring Kitty still own his infamous GME holdings amid MassMutual's receipt of a multi-million-dollar fine?

Massachusetts fines MassMutual $4.75 million for lack of oversight on Roaring Kitty.

Massachusetts regulators have fined a subsidiary of insurance company MassMutual (aka Massachusetts Mutual Life Insurance Company) a total of $4.75 million for its lack of oversight on Roaring Kitty's online presence. Meanwhile, regulators will complete a full audit and social media compliance review for the parent company.

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Until January, Gill was an agent at MML Investors Services, where he held a financial broker license. Gill claims that he never breached his fiduciary responsibilities, but his excessive influence has led U.S. institutions to question his innocence in the matter.

Gill resigned from his role in January when shares for GME swelled about 1,784 percent by the month's end. By the end of February, he no longer held his registration as a broker with FINRA (Financial Industry Regulatory Authority), according to online records.

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In addition to popularizing his own view on GameStop stock to the masses, Gill also carried out stock trades for three other individuals who weren't tied with MassMutual. The company didn't approve the trades, but it also didn't look out for Gill's behavior.

MassMutual accepted the state-imposed fine and audit requirements. A spokesperson from MassMutual told reporters at The New York Times, "MassMutual is pleased to put this matter behind us, avoiding the expense and distraction associated with protracted litigation."

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Roaring Kitty adjusted his GME holdings on Apr. 16

On Apr. 16, 500 of Gill's GameStop options contracts expired. He exercised the contracts and received 50,000 additional options shares with a $12 strike price. Meanwhile, he purchased an additional 50,000 GME shares.

Following his investment restructuring, Gill's GME position was worth at least $30 million, with a realized profit of $20 million. GME alone made him a multi-millionaire, which means that he didn't need that MassMutual employment after all.

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Where are Roaring Kitty's GME holdings now?

Despite plenty of volatile fluctuation, GME stocks are still at a decent place compared to the start of the year. YTD, the stock is up more than 1,082 percent. The shares have grown more modestly since Apr. 16 with an increase of just over 31 percent. For those tens of thousands of shares he took on in April, the gains aren't as dramatic, but they are sitting well above market average nonetheless.

The quadruple witching event on Sept. 17—where contracts on stock options, index options, stock futures, and index futures all expire on the same day—could pose a shift for Roaring Kitty's positions. We have yet to see whether he'll be as open about his personal portfolio as he has in the past, especially considering MassMutual's recent fine.

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