- Melvin Capital lost 53% in January, sources advised Insider. The Wall Avenue Journal first reported the loss.
- The fund ended the month with more than $8 billion in resources below administration.
- Melvin Capital turned into among the many excessive-profile hedge funds that got torched after GameStop shares skyrocketed.
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Melvin Capital Management lost over half its resources after GameStop burned short-promoting funds this month.
The hedge fund, which turned into at the center of the GameStop frenzy, lost 53% in January, sources terminate to the fund advised Insider. The Wall Avenue Journal first reported the loss.
Melvin Capital, founded by vital particular person portfolio manager Gabe Plotkin, began the year with $12.5 billion in resources and ended the month with more than $8 billion in resources below administration after unusual traders committed extra capital, the availability stated. Billionaire traders Steve Cohen and Ken Griffin invested $2.75 billion into the hedge fund earlier this week.
Melvin Capital, alongside with excessive-profile hedge funds Citron Study and Point72, got torched after GameStop shares skyrocketed this month, fueled by Redditors the usage of shopping and selling app Robinhood.
Particular person retail traders, including members of the in model Reddit dialogue board r/WallStreetBets, attempted to burn short-sellers of GameStop by shopping up shares and sending the stock surging as distinguished as 2,000% month-to-date. Short-sellers lost about $19 billion on GameStop this year, in accordance to figures from recordsdata provider Ortex.
Melvin closed its short space on GameStop stock on January 27.
New and existing customers signed as much as make investments extra funds into Melvin Capital on February 1, the Journal reported, nonetheless the firm would no longer say how distinguished.
Citron Study additionally closed its short space on GameStop after covering a 100% loss. Citron Study managing accomplice Andrew Left, a target for impassioned traders on Wall Avenue Bets, introduced the firm would conclude publishing “short experiences.”
–Insider’s Alex Morrell contributed to this document