Billionaire investor Steven Cohen’s Point72 Asset Management suffered a loss of nearly 15% this year due to a sudden increase in the shares of video game retailer GameStop Corp, The New York Times reported on Wednesday.
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The losses at Point72, which manages nearly $ 19 billion in assets, stem in part from its investment in hedge fund Melvin Capital Management, which had made a massive bet against GameStop, the report said.
|GME||GAMESTOP CORP||347.51||+199.53||+ 134.84%|
But as GameStop has climbed 700% over the past two weeks, spurred by increased interest from amateur investors, Melvin has suffered sudden losses.
One of the rescuers was Cohen’s hedge fund, which has around $ 1 billion under management with Melvin, NYT said.
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Point72 decided to add $ 750 million, Melvin said Monday, in addition to accepting a $ 2 billion investment from Citadel, the Chicago-based hedge fund led by Ken Griffin.
Point72 declined to comment when contacted by Reuters.
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A spokesperson for Melvin, founded in 2014 by Gabriel Plotkin, said the fund has closed its position in GameStop and repositioned the portfolio.
(Reporting by Juby Babu in Bengaluru; Editing by Arun Koyyur)