{"id":990,"date":"2021-02-01T12:07:28","date_gmt":"2021-02-01T05:07:28","guid":{"rendered":"https:\/\/www.esgi.ai\/bpDataset\/?p=990"},"modified":"2025-03-14T08:12:17","modified_gmt":"2025-03-14T01:12:17","slug":"melvin-capital-hedge-fund-that-bet-against-gamestop-lost-more-than-50-in-january","status":"publish","type":"post","link":"https:\/\/www.esgi.ai\/id\/melvin-capital-hedge-fund-that-bet-against-gamestop-lost-more-than-50-in-january\/","title":{"rendered":"Melvin Capital, hedge fund that bet against GameStop, lost more than 50% in January"},"content":{"rendered":"

Hedge fund Melvin Capital Management lost 53% in January amid a\u00a0record rally<\/a>\u00a0in\u00a0GameStop<\/a>\u00a0and other stocks the fund was betting against, a source familiar with the matter told CNBC.<\/p>\n

The heavy losses come as retail investors piled into popular hedge fund short targets, including the struggling video game retailer. Shares of GameStop finished last week with a\u00a0gain of 400%<\/a>, bringing its total return this year to 1,625%. The stock closed Friday\u2019s session at $325. As recently as October it traded under $10.<\/p>\n

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CNBC\u2019s Andrew Ross Sorkin reported last week that Melvin Capital closed out its short position in GameStop on Tuesday afternoon\u00a0after sustaining heavy losses<\/a>.<\/p>\n

Citadel and Point72 infused\u00a0close to $3 billion<\/a>\u00a0into the fund to shore up its finances. Point72 slid 10% in January, according to a source with knowledge of the fund\u2019s returns. Point72 declined to comment.<\/p>\n

Citadel lost 3% in January, according to a source with knowledge of the fund\u2019s returns. Citadel declined to comment. The source said the hedge fund was down 1% on its Melvin investment, which it made last week.<\/p>\n

Melvin\u2019s assets under management now stand at more than $8 billion \u2014 including the emergency funding \u2014 down from roughly $12.5 billion at the beginning of the year, after certain current investors committed additional capital at the end of the month.<\/p>\n

The fund\u2019s liquidity is strong and its use of leverage is at the lowest level since the fund\u2019s inception in 2014, according to the source.<\/p>\n

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Read also U.S. economy closes out 2020 with lower than expected 4% gain<\/a><\/div>\n<\/div>\n<\/div>\n

The Wall Street Journal<\/a>\u00a0first reported Melvin\u2019s January losses.<\/p>\n

Last week\u2019s activity in GameStop extended to other popular short targets, including Bed Bath & Beyond and AMC Entertainment, with retail investors turning to Reddit\u2019s WallStreetBets forum to discuss various trades. The forum has seen its members more than triple in just a week to north of 7 million.<\/p>\n

Amid the short squeeze, Robinhood and other brokerages restricted trading in some of the most volatile names, sparking frustration for users who were unable to trade at will.<\/p>\n

Robinhood said in a blog post that the central Wall Street clearinghouse mandated a tenfold increase in the firm\u2019s deposit requirements on the week in order to ensure smooth settlement in trades involving the securities experiencing unprecedented volatility.<\/p>\n

The meteoric rise in GameStop\u2019s shares has prompted some lawmakers to call on regulatory bodies to intervene.<\/p>\n

\u201cWe need an SEC that has clear rules about market manipulation and then has the backbone to get in and enforce those rules,\u201d Sen. Elizabeth Warren, D-Mass., told CNBC Wednesday. \u201cTo have a healthy stock market, you\u2019ve got to have a cop on the beat.\u201d<\/p>\n

Source : https:\/\/www.cnbc.com\/2021\/01\/31\/melvin-capital-lost-more-than-50percent-after-betting-against-gamestop-wsj.html<\/p>","protected":false},"excerpt":{"rendered":"

Hedge fund Melvin Capital Management lost 53% in January amid a\u00a0record rally\u00a0in\u00a0GameStop\u00a0and other stocks the fund was betting against, a source familiar with the matter told CNBC. The heavy losses come as retail investors piled into popular hedge fund short targets, including the struggling video game retailer. Shares of GameStop finished last week with a\u00a0gain …<\/p>\n

Melvin Capital, hedge fund that bet against GameStop, lost more than 50% in January<\/span> Selengkapnya »<\/a><\/p>","protected":false},"author":1,"featured_media":991,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":""},"categories":[38],"tags":[],"yoast_head":"\nGameStop Hedge Fund, Melvin Capital lost more than 50% in January<\/title>\n<meta name=\"description\" content=\"Hedge fund Melvin Capital Management lost 53% in January amid 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