Skip to main content

Market Overview

GameStop Short Seller Melvin Capital Ended 2021 First-Half With 46% Loss: Report

Share:
GameStop Short Seller Melvin Capital Ended 2021 First-Half With 46% Loss: Report

GameStop Corp. (NYSE: GME) short seller Melvin Capital Management LP ended the first half of 2021 with a loss of 46%, Bloomberg reported Thursday, citing people familiar with the matter.

What Happened: Founded in 2014 by Gabe Plotkin, a former portfolio manager for Steve Cohen, Melvin Capital was at the heart of the GameStop saga earlier this year.

The hedge fund, which managed $11 billion in assets as of June 1, is taking smaller-sized positions to limit exposure to single companies, as per the report.

Plotkin has reportedly instructed his team of data scientists to watch social media and message boards to look for shares that are seeing high support from retail investors.

See Also: AMC Tricks Shorts, Options Traders Join The Game

Why It Matters: Melvin Capital’s first-half results indicate the hedge fund is struggling to rebound from the losses it incurred from betting against GameStop and other stonks - stocks popular with retail investors.

Melvin Capital said in May it has closed out of all its public bearish positions in the first quarter. This included its listed put options in GameStop.

It was reported in June that London-based White Square Capital is shutting down after suffering huge losses during the retail trading frenzy earlier in the year. This marked one of the first hedge fund closures following the surge in shares of stonks.

In early June, AMC Entertainment Holdings Inc. (NYSE: AMC) and GameStop short-seller losses swelled up to $12 billion on a year-to-date basis. Both the stocks continue to see high interest from retail investors.

Price Action: AMC Entertainment shares closed almost 6.4% higher in Thursday’s regular trading session at $47.94, while GameStop shares closed almost 0.4% higher at $191.38.

Read Next: Is Now The Time To Buy Into Newegg, Apple Or AMC Stock?

 

Related Articles (GME + AMC)

View Comments and Join the Discussion!

Posted-In: Gabe Plotkin Melvin Capital RedditNews Short Sellers Hedge Funds Media General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com