Hedge fund Melvin sustains 53% loss after Reddit onslaught

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Melvin Capital, the hedge fund that was wrongfooted by retail merchants who drove up shares in GameStop and different firms it had guess in opposition to, misplaced 53 % in January, in accordance with folks conversant in the agency’s outcomes.

The New York-based hedge fund sustained a $4.5 billion fall in its belongings from the tip of final 12 months to $eight billion, even after a $2.75 billion money injection from Steve Cohen’s Level72 Asset Administration and Ken Griffin’s Citadel.

Melvin grew to become the goal of retail merchants who coordinated to drive up the share value of GameStop on on-line message boards resembling Reddit, after the agency disclosed its guess in opposition to the corporate in regulatory filings.