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Hedge fund Melvin Capital lost 49% on its investments in Q1 -source

EconomyApr 09, 2021 07:55PM ET
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BOSTON (Reuters) -Melvin Capital, the hedge fund at the center of the GameStop (NYSE:GME) trading frenzy, lost 49% on its investments during the first three months of 2021, a person familiar with the matter said on Friday.

The fund, founded by Gabe Plotkin, lost 7% in March, the source added, speaking on condition of anonymity.

A Melvin Capital spokesman declined to comment.

Melvin had established itself as a strong performer posting annualized returns of 30% between 2014 and 2020

But Plotkin had bet the retailer GameStop's stock price would tumble and then faced off with retail traders who used online trading apps and exchanged information on Reddit's WallStreetBets forum to push the stock price significantly higher in the early weeks of January.

Melvin Capital ended January with a 53% loss on its investments in January, the person said.

GameStop's stock, which traded at less than $5 a year ago closed at $158.36 on Friday. It had briefly topped $400 a share in January.

Hedge fund managers Steven A. Cohen, who had trained Plotkin, and Kenneth Griffin stepped in to aid Plotkin in January with Griffin's Citadel LLC and Cohen's Point72 Asset Management adding $2.75 billion in new funds to the firm.

Hedge fund Melvin Capital lost 49% on its investments in Q1 -source
 

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Comments (6)
GFlen BC
GFlen BC Apr 11, 2021 10:57PM ET
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Have they covered the GME shorts ?
Joe DiMagico
Joe DiMagico Apr 10, 2021 4:13AM ET
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all shorts must cover....
Pablo Blanc
Pablo Blanc Apr 10, 2021 12:01AM ET
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Nokia
hamid Manogangcar
hamid Manogangcar Apr 09, 2021 8:15PM ET
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hi🌃🌃🌃🌃
Will Back
Will Back Apr 09, 2021 5:21PM ET
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Another smash down it will go
kerry kerry
kerry kerry Apr 09, 2021 5:13PM ET
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👍👍👍👍
 
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