Melvin Capital, the hedge fund made famous through its bet against GameStop Corp. (NYSE: GME) lost more than half of its funds in January, according to The Wall Street Journal
From $12.5 billion to $8 billion
Melvin Capital, the hedge fund started by Gabe Plotkin, entered 2021 with $12.5 billion in capital. But heading into the first trading day of February, the hedge fund is overseeing more than $8 billion — a figure that includes a $2.75 billion cash infusion from Citadel, its partners, and Plotkin’s former employer, Steven cohen’s Point72 Asset Management.
Citadel, its partners, and Point72’s cash infusion closed last Monday and their investment is already in the red. However, the size of the loss is not immediately known, according to WSJ.
Yet despite a very rough start to 2021 by every measure, Melvin has attracted both new and existing clients to invest capital at the start of February, a source told WSJ.
Should you invest in GameStop? Here is a helpful Invezz.com guide on everything you need to know.
Losses extend beyond GameStop
Melvin Capital’s multi-billion dollar loss to start 2021 was fueled by more than just GameStop, according to WSJ. According to the fund’s most recent regulatory disclosure, we can see now that its bearish bets have since moved in the wrong direction.
At the time of the last disclosure, the fund held put options on Bed Bath & Beyond Inc. (NASDAQ: BBBY), GSX Techedu Inc (NYSE: GSX), and National Beverage Corp. (NASDAQ: FIZZ). Shares of the home goods retailer are higher by nearly 80% at their intraweek highs last week.
Shares of the China-based tutoring company
