FILE PHOTO: A GameStop store is photographed in Austin, TX, U.S., March 26, 2018. REUTERS/Mohammad Khursheed
January 28, 2021
BOSTON (Reuters) – Hedge fund Melvin Capital Management, which had suffered heavy losses by betting against video game retailer GameStop, has closed out the position and repositioned the portfolio, a spokesman for the firm said on Wednesday.
“Melvin Capital has repositioned our portfolio over the past few days. We have closed out our position in GME (GameStop),” the spokesman said in a statement.
The spokesman also said that the firm, once among Wall Street’s best performers, is not collapsing. “The social media posts about Melvin Capital going bankrupt are categorically false,” he said.
Earlier this week prominent hedge funds Citadel and Point72 Asset Management extended a $2.75 billion financial lifeline to the fund. People familiar with the fund said it lost almost 30% in the first three weeks of January.
GameStop closed up 92.71% on Tuesday at $147.98, and is trading up 65% before the opening on Wednesday.
(Reporting by Svea Herbst-Bayliss; editing by Jason Neely)