August 21 (Reuters) – Citadel LLC and Citadel partners Kenneth Griffin plan to exchange about $ 500 million for the $ 2 billion they invested in Melvin Capital, the Wall Street Journal reported on Saturday, citing people familiar with the subject.
Along with Steven A. Cohen’s Point72 Asset Management, Griffin’s Citadel had invested $ 2.75 million in January in Melvin Capital, the hedge fund that was at the center of GameStop’s commercial frenzy (GME.N) earlier this year. .
According to the WSJ, he was unable to determine whether Citadel plans to change more money later. Citadel is expected to remain a major investor, the report added, citing someone familiar with the matter.
Melvin Capital, the fund founded by Gabe Plotkin, lost 49% of its investments during the first three months of 2021, a person familiar with the matter told Reuters. Read more
Melvin had established itself as a strong producer that posted annualized returns of 30% between 2014 and 2020.
But Plotkin had bet that the stock price of the GameStop store would fall and he faced retailers who used online trading apps and exchanged information on Reddit’s WallStreetBets forum to significantly raise the price of stocks during the early weeks of January.
Aakriti Bhalla reports in Bengaluru; Edited by Daniel Wallis
Our standards: the principles of trust of Thomson Reuters.