Business • Markets

Hedge fund Melvin Capital lost 53% in January after betting against GameStop stock

The hedge fund Melvin Capital apparently lost more than half of its assets in January. The reason is the heavy increase GameStop stock which Melvin Capital has short positions on. The news agency Reuters quotes an insider familiar with the company's figures. According to the report, the assets invested by Melvin Capital, which amounted to 12.5 billion dollars at the beginning of the year, had fallen by 53 percent by the end of the month.

Nevertheless, the company ended January with more than eight billion dollars in assets - after hedge funds Point72 and Citadel prevented the collapse of their partner with a financial injection of 2.75 billion dollars.

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