Two retail traders have formalized their Discord-based trading group into a registered investment fund managing $20 million, focusing on high-volatility stocks like TSLA, GME, and AMC. The move marks a growing trend of decentralized investor collectives evolving into structured finance entities.
- Apex Alpha Collective launched with $20 million in assets under management
- TSLA, GME, and AMC account for 54% of the fund’s portfolio
- Fund outperformed SPY by 4.3 percentage points YTD
- Formal structure includes risk controls and regulatory compliance
- Fund experienced a 28% drawdown in October 2024
- Originated from a Discord trading community with retail investor base
Two retail traders who built a following through a Discord channel dedicated to speculative stock trading have launched a registered investment fund with $20 million in assets under management. The fund, officially named Apex Alpha Collective, was formed after the group’s coordinated trading in stocks such as Tesla (TSLA), GameStop (GME), and AMC Entertainment (AMC) attracted widespread attention during late 2024. Their success in amplifying retail investor sentiment around meme stocks and tech growth equities led to a formal structure for capital deployment and risk management. The fund’s initial portfolio includes 65% exposure to technology and consumer cyclical stocks, with TSLA representing 22% of holdings, GME at 18%, and AMC at 14%. These allocations reflect the group’s historical trading patterns and continued confidence in high-beta assets. The fund is structured as a limited liability company with a board of advisors including former fintech compliance officers and a registered investment advisor. It also implements stop-loss protocols and quarterly rebalancing—features absent in the original informal chat. Market participants note that the fund’s creation signals a maturation of retail-driven trading communities. While the fund is still small relative to institutional players, its $20 million AUM has already drawn interest from other decentralized trading groups seeking to formalize operations. The move may influence future retail investor behavior by demonstrating a path from social speculation to regulated investment vehicles. The fund’s performance since launch in November 2024 has outpaced the S&P 500 ETF (SPY) by 4.3 percentage points year-to-date, driven largely by gains in TSLA and GME during quarterly earnings events. However, volatility remains high, with a 28% drawdown in October—highlighting the risks inherent in concentrated retail strategies.