BOSTON (Reuters) – Hedge fund Melvin Capital Management, which suffered heavy losses by betting on video game retailer GameStop, closed the position and repositioned the portfolio, a company spokesman said on Wednesday.
‘Melvin Capital has repositioned our portfolio over the past few days. We have closed our position in GME (GameStop), “the spokesperson said in a statement.
The spokesman also said the firm, which was once among Wall Street’s best performers, was not collapsing. “The social media posts about Melvin Capital going bankrupt are extremely false,” he said.
Earlier this week, leading hedge funds Citadel and Point72 Asset Management extended a $ 2.75 billion financial bailout to the fund. People familiar with the fund said it had lost nearly 30% in the first three weeks of January.
GameStop closed 92.71% on Tuesday at $ 147.98 and traded 65% before opening Wednesday.
Reporting by Svea Herbst-Bayliss; edited by Jason Neely