BOSTON (Reuters) – Melvin Capital Management hedge fund, which suffered heavy losses by betting against video game retailer GameStop, closed the position and repositioned its portfolio, a company spokesman said on Wednesday.
“Melvin Capital has repositioned our portfolio in recent days. We have closed our position in GME (GameStop), “the spokesman said in a statement.
The spokesman also said that the company, once one of the best artists on Wall Street, is not collapsing. “Posts on social media about Melvin Capital’s bankruptcy are definitely false,” he said.
Earlier this week, major hedge funds Citadel and Point72 Asset Management expanded the financial fund by $ 2.75 billion. People familiar with the fund said it lost almost 30% in the first three weeks of January.
GameStop closed Tuesday at 92.71% on Tuesday at $ 147.98 and is trading 65% ahead of Wednesday’s opening.
Report by Svea Herbst-Bayliss; edited by Jason Neely