Photographer: Tiffany Hagler-Geard / Bloomberg
Photographer: Tiffany Hagler-Geard / Bloomberg
Melvin Capital lost about 53% in January on GameStop Corp. and more than a dozen other bets after the company discovered the end of a brief bout started by retail investors on Reddit, according to someone familiar with the company’s performance.
Melvin now has the lowest rate of turnover since the company was founded in late 2014, the man said. Hedge funds said last week that they had “reset the pack,” including covering its GameStop briefly.
Founded by Gabe Plotkin, former portfolio manager for Steven Cohen, Melvin now manages more than $ 8 billion, including $ 2.75 billion in funds invested by Citadel LLC and Cohen’s Point72 Asset Management entered the hedge fund last week. It also brings in capital from existing clients that augment their investments, the person said.
Citadel hedge fund, along with founder Ken Griffin and sound partners, contributed $ 2 billion to Melvin. The funds lost less than 1% in January on their position in Melvin, according to someone familiar with the Griffin company.
Point72, which invested $ 750 million and already owned about $ 1 billion in the company, was down between 10% and 15% through the end of January. It was unclear how much of that loss came from his investment in Melvin.
Melvin’s loss was reported earlier by the Dow Jones.