BOSTON (Reuters) – Hedge fund Melvin Capital Management, which had suffered heavy losses by betting on video game retailer GameStop, has closed the position and relocated its portfolio, a firm spokesman said on Wednesday.
“Melvin Capital has repositioned our portfolio in recent days. We have closed our position at GME (GameStop), ”the spokesman said in a statement.
The spokesman also said the firm, once among the best Wall Street artists, is not collapsing. “Social media posts about the bankruptcy of Melvin Capital are categorically false,” he said.
Earlier this week, major hedge funds Citadel and Point72 Asset Management extended a $ 2.752 billion financial lifeline to the fund. People familiar with the fund said it lost nearly 30% in the first three weeks of January.
GameStop closed 92.71% on Tuesday at $ 147.98 and is trading 65% ahead of Wednesday’s opening.
Svea Herbst-Bayliss Reports; edited by Jason Neely