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Billionaire investor Steven Cohen’s Point72 Asset Management suffered a loss of nearly 15% this year due to a sudden increase in shares of video game retailer GameStop Corp, the New York Times reported Wednesday.
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The loss at Point72, which manages nearly $ 19 billion in assets, comes in part from the investment in hedge fund Melvin Capital Management, which made a big bet against GameStop, the report said.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| GME | GAMESTOP CORP | 347.51 | +199.53 | + 134.84% |
But as GameStop has risen 700% over the past two weeks, heightened by interest among amateur investors, Melvin has faced sudden losses.
One of the rescuers was Cohen’s hedge fund, which managed about $ 1 billion under Melvin, NYT said.
SAFETY ON SEC MONITORING OF THE MARKET AFTER GAMESTOP, AMC ACTION FOOD
Point72 has decided to add $ 750 million, Melvin said Monday, except that he has accepted a $ 2 billion investment from Citadel, the Chicago-based hedge fund led by Ken Griffin.
Point72 declined to comment when Reuters contacted him about it.
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A Melvin spokesman, who was founded in 2014 by Gabriel Plotkin, said the fund closed its position in GameStop and repositioned the portfolio.
(Reporting by Juby Babu in Bengaluru; Editing by Arun Koyyur)