Melvin Capital Management, the hedge fund that has borne the brunt of losses from the soaring stock prices of heavily shorted stocks recently, lost 53% in January, according to people familiar with the firm.
Melvin was founded by Gabe Plotkin, a former star portfolio manager for hedge-fund titan Steven A. Cohen. It started the year with about $12.5 billion and now runs more than $8 billion. The current figurein emergency funds Citadel LLC, its partners and Mr. Cohen’s Point72 Asset Management injected into the hedge fund last Monday.
As part of the deal, they got non-controlling revenue shares in Melvin for three years. So far, Citadel, its partners and Point72 have lost money on the deal, though the precise scope of the loss was unclear Sunday. Melvin has massively de-risked its portfolio, said a client. People familiar with the hedge fund said its leverage ratio—the value of its assets compared with its capital from investors—was the lowest it has been since Melvin’s 2014 start. They also said the firm’s position-level liquidity, or its ability to exit securities in its portfolio easily, had increased significantly.
New and existing clients have signed up to invest money into Melvin on Feb. 1, according to the people familiar. It was unclear how much they would be adding.
Ouch 🙈
billpostmus
oh no, they might have to work a real job
What happens next
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Justice at last.
Hedge funds which 'short' take a gamble on the future share price, so why the surprise when the bet doesn't pay off?
Good.
Too much for just one man?
What happened to the Muller Report Everyone of the REPUBLICANS that continue to justify the hateful and criminal behavior of Trump and his allies need to be removed from your seats permanently!!! Especially Mitch McConnell PERIOD!!!!!
Where's the referee on this play?
I thought they went bankrupt 🤔
they need to lose more
♥️♥️♥️♥️♥️♥️
Suck shit.
ouch!
GME at $366 in EU markets
old school capitalism vs 21st century capitalism 😁
I hope they go out of business 💎 🙌
Good
So they only have 47% of their dirty money left? Sounds like they didn't lose enough.
Hoorah. Bad boys had it good for years. Retribution time.
What happened? Did the little guy organize and manipulate the market like the hedge funds do on the daily? Awwww NOT FAIR!!
Fuck the suits! 💎👐🏻
This is what they get for short selling! Which shouldn’t be aloud!
good luck
🎻 Look! I found the world's tiniest violin!
Good, fuck them
😂
Gotta pay $ to actually give a shit about their losses. Noone gives a shit.
“Nobody give a fuck about us But when I start to rise A hero in they children's eyes Now they give a fuck about us” - 2pac Eat shit, hedgies. 1 down. More to go
Cry me a river! Karma at Its best.
Wow!
He should skip the avocado toast and starbucks, also maybe get a second job
Good.
Foot on the gas pedal
There no crying in capitalism. You knew you were in a high risk business. Those kids working at Game Stop were just trying to pay their rent and car insurance.
I told myself I wouldn't cry.😂🤣😂
They were hurt? Oh no! Get them a band-aid for their owie. You know who is actually hurting? Give you a hint. It's not hedge fund firms
Follow my new account. Dm me with your favorite movie of me. I’m helping 20 lucky fans to get their life back with a grant of about $30,000
Jail them.
Literally worse than the holocaust. This is straight up antisemitism.
🌈🐻 r fuk
Maybe don’t short a stock more than 100%... that’s one way to prevent massive losses.
Don’t it suck to be SHORTED? A**holes!
Folks, it’s just like gambling. Get over it.
Hedging is speculation. Sometimes you win, sometimes you lose. Pigs get fat, hogs get slaughtered. HedgeFunds hogs investment gambling StockMarket
Crushed $GME
Ouch!
I bet they are still gonna raise more capital next quarter
Bet that those betting on the index funds didn't lose that over the course of the year. indexisbest
Fuck the Wall Street journal
Will you please mark 'sponsored content' accordingly? I don't see any legible indicator of that on the page.
Are they losing clients yet? That is big question. Or was Melvin Capital just trying to manipulate the market when they said they closed out of the $gme shorts?
They deserve to go bankrupt
Video that sums up what happens in a short from 2006.
Show the release direct from Melvin, else you are covering for them and you are fakenews
lets make em bleed tommorow
TheRalphRetort Oy vey
TheRalphRetort
😂
fuckwallstreet letthepeoplebuystonks
They were dumb and greedy. They should have covered when $GME started moving to $20s. It is not like this happened overnight. It amazes me that people give their hard earned money to these hedge funds 🙄
The stock market is for investment, not gaming the system with hedges. Why does the market even allow it? Just so the 1% can make money on declining stocks?
These guys, like Chanos, think they can go on CNBC, Bloomberg, etc., unfettered, and say whatever they want about a company to drive down the shares (that THEY already shorted!). Party’s over. “Equal time” must be a part of any basher or promoter getting time.
Good news,we celebrate
Git gud
It would have been so much more if rh didn’t do what they did
Awwwww
Funny, someone's pension will be hurt. That's where their money from.
😭😭😭😭🤣🤣🤣🤣🤣🤣
Has anyone rood Plotkin he could save some money by biking to work a couple days a week? Also, skip the Starbucks and brew your own coffee at home. Perhaps he should just lift himself up by his bootstraps? Work harder, Gabe.
WS thinks they own the world ... they got burned by regular folk... lmao, sometimes all is right with the world ... while I lost money in the market drop, this was a beautiful thing ...
😆
Uhh... half
💎💎💎🙌🙌🙌🙌
War
We can’t stop here.
Go $NOK for tomorrow!
Welcome...to our world...kinda’
One of those unnecessary waste industries that are just not needed in the betterment and progression of the human race.
It is naive to believe there are not big institutions doing the same thing and squeezing out the shorts. It is market manipulation. We are now allowing something that will harm small and big investors down the road. It is hypocritical.
🎻 😢 🤣
Wow.
There’s no evidence Melvin is out of their short position. Melvin is still balls deep in GME 💎🤲💎🤲🚀🌝
Again with them 'people familiar with the firm'
Should’ve been 100%.
47% to go, good.
Not so smart after all, the game have change for these hedge funds managers.
Ok BUT what about the billions they made stop crying like babies take the loss and move on
😆😅😂🤣 As is we needed another example that the rich aren't smarter, just luckier and greedier.
First one’s free.
When millions are celebrating your loss and failure, there’s definitely something wrong about you.
great news. Time for these Crooks to take a Hit. They are all Disgraceful Money Grubbers.
Having an market aggregate short position in excess of 100% of issued stock is not a wise investment strategy. It's actually rather foolish. Any firm that adopts such a position deserves to be burned to the ground and the responsible parties barred from ever trading again.
Raise your had if don't give two shits if all these predatory hedge funds go broke. I dare anyone to give me a sound reason to have a system which encourages the financial destruction of companies to stay in place.
These hedge funds have very little real value in American society. They use $millions$ to simply move money around like a board game.
Good
Cry me a river
It is good for these guys to taste the consequences of their own manipulations.
They have to make 100% profit at least to get back what they lost. This phrase was always used for small investors but now it's their turn. What a big loss! 🤭
Who cares!!!! How much money did he make over the last years
EanMeyer
We won’t stop until we bankrupt them!
They deserve to lose it all for not hedging their short position with cheap calls.
Well...they're about to have a realllll shitty start to Feb too.
RaidonWallstreet
Modern problems need modern solutions. This is the way.
Karma
Poor guy! He’ll have to buy the cheap caviar now.
Wait you can LOSE MONEY BY GAMBLING!?!
briankoppelman ‘cause I doubt anyone else is sending this to you.
NickJFuentes In February they will lose the other 47%
💎🙌💎🙌 **Cough** Fuck you 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀
Like many, I’ve been reading comments about this orchestrated attack on the wealthy elite. One commenter posted “I don’t even care if I lose my investment as long as those billionaire hedge fund managers lose”. I don’t think this is over. Far from it.
a few more days and they would have had to learn JavaScript coding 🤣🤣
hahahahaha... 😂😂😂
Capitalism is dying. The 'Game' is changing.
Dang... Let me shed a tear... nah imma gonna buy more stonks with my stimulus “sitting at home”.
When are they liquidating finally? GME gamestonk
Tanzeel_Akhtar Hedge funds are obviously playing with fire 🔥🔥🔥
LOL! Rubbish. You claim they ended their short positions, and the proof you linked to in article, were more articles talking about their loses. Their interest loses. Stop lying. The red wedding has just begun. Everyone knows they created GHOST stocks and conspired to devalue
Funny, Wall Street was not worry about fluctuation when trump said things that manipulated the market! Probably because they knew in advance what trump was going to say! ImpeachTrumpNow
Awwww....yeah, no. Glad he got screwed.
🚀🚀🚀🚀🚀
Ha ha
Next time don't short assholes...
NickJFuentes And if they didn’t halt trading when they did, there would’ve been a lot more damage than 53%
53% of total capital or 53% YTD loss?
I love this wsbmod 🚀🪙 wallstreetbets
Those are rookie numbers, gotta pump those numbers up
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