NEW YORK — Hedge fund Melvin Capital Management announced that hedge fund Citadel and Point72 have made investments of $2.75 billion into its fund.
The Wall Street Journal reported that Melvin lost 53% of its value last month and was heavily short Gamestop which soared after traders on Reddit bought shares and options in the retailer.
“I am incredibly proud to partner with Ken Griffin and Steve Cohen,” said Melvin Founder and CEO Gabriel Plotkin. “The team at Melvin is eager to get to work and reward the confidence of these two great investment icons.”
The $2.75 billion investment includes $2 billion from Citadel and its partners and $750 million from Point72, and both are taking a non-controlling revenue share in Melvin.
“Gabe Plotkin and team have delivered exceptional results over the history of Melvin. We have great confidence in Gabe and his team,” said Ken Griffin, Founder and CEO of Citadel.
“I’ve known Gabe Plotkin since 2006 and he is an exceptional investor and leader. We are pleased to have the opportunity to invest additional capital and take a non-controlling revenue share in Melvin Capital,” said Steve Cohen, Chairman and CEO of Point72.
