BOSTON (Reuters) – Hedge fund Melvin Capital Administration, which had suffered heavy losses by betting on online game retailer GameStop, has closed its place and repositioned its portfolio, an organization spokesman stated on Wednesday.
“Melvin Capital has repositioned our portfolio in current days. We’ve got closed our place in GME (GameStop), the spokesman stated in a press release.
The spokesman additionally stated that the corporate, as soon as one in every of Wall Avenue’s finest performers, isn’t collapsing. “The social media about Melvin Capital going bankrupt is categorically false,” he stated.
Earlier this week, distinguished hedge funds Citadel and Point72 Asset Administration prolonged a $ 2.75 billion monetary lifeline to the fund. Individuals aware of the fund stated it misplaced practically 30% within the first three weeks of January.
GameStop closed 92.71% on Tuesday to $ 147.98 and traded 65% earlier than opening on Wednesday.
Reporting by Svea Herbst-Bayliss; enhancing by Jason Neely
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