[ad_1]
As shares of GameStop, the video game retailer, surged amid a wave of speculative investment from small investors, Point72, the hedge fund managed by Mets owner Steve Cohen, lost nearly 15 % this year, according to someone familiar with the matter.
GameStop’s sudden rally – stocks jumped 135% on Wednesday alone and are up more than 1,700% this year – took its toll on some big investors who had bet against the stock. The losses at Point72, which manages nearly $ 19 billion in assets, stem in part from the company’s investment in Melvin Capital, a hedge fund that had made a massive bet against GameStop.
As stocks rose, Melvin struggled with sudden losses and had to accept $ 2.75 billion in bailout capital from two outside investors. One of the rescuers was Point72, who already had around $ 1 billion under management with Melvin, said two people with knowledge of the relationship, and added $ 750 million to help stabilize Melvin this week.
Because Melvin was investing money on behalf of Point72, Point72’s results were also affected by the recent crisis, these people said.
The Point72 losses are the first clear indication of the ripple effects of Melvin’s recent unrest, which has been a source of concern to both Wall Street and the baseball community. Stocks saw their worst performance since October Wednesday in part because investors fear other large funds could take losses as well.
And late Tuesday night, Mr. Cohen was faced with questions on Twitter about the potential impact of Melvin’s losses on the Mets, which he bought for around $ 2.5 billion in November.
“Why would one have anything to do with the other,” Mr. Cohen replied in a post on twitter.
A spokesperson for Mr Cohen said he was not available for comment.
[ad_2]
Source link