GameStop hedge fund victim of speculative surge bailed out by two Wall Street heavyweights

Posted on Jan 27, 2021 at 2:15 PMUpdated Jan 27, 2021, 2:33 PM

The “big cats” of the hedge fund world, Steve Cohen (Point72) and Ken Griffin (Citadel LLC), took advantage of the setbacks of the hedge fund Melvin ($ 12.5 billion in assets at the start of the year). This fund was already losing more than 30% in January, with a risk of closure if its customers were to leave it according to the “Wall Street Journal”.

The two hedge funds will invest $ 2.75 billion in Melvin and prevent him from a probable debacle. Citadel and its associates will invest $ 2 billion and Point72, $ 750 million. The latter was already invested to the tune of a billion dollars in Melvin, founded by Gabe Plotkin, a former manager of SAC capital, the first hedge fund of Steve Cohen, a fund involved in a vast case of insider trading. Point72 is a fund heavily invested in three sectors, information technology, health and consumer goods. Among its top 10 investments are Amazon, Alibaba, Alphabet, Facebook, PayPal, Palentir and Dell.

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