Steven Cohen’s fund Position72 suffers 15% decline amid GameStop frenzy: NYT

Billionaire investor Steven Cohen’s Level72 Asset Management has experienced a almost 15% decline this calendar year due to a sudden surge in the shares of video-match retailer GameStop Corp, the New York Situations reported on Wednesday.

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The losses at Point72, which manages nearly $19 billion in belongings, arrived in element from its financial investment in hedge fund Melvin Cash Administration, which experienced built a substantial bet versus GameStop, the report mentioned.

Ticker Security Previous Change Alter %
GME GAMESTOP CORP 388.55 +43.56 +12.63%

But as GameStop soared 700% in excess of the earlier two months, boosted by elevated interest amid novice buyers, Melvin confronted unexpected losses.

A single of the rescuers was Cohen’s hedge fund, which has approximately $1 billion less than management with Melvin, NYT explained.

SEC Checking Current market VOLATILITY Soon after GAMESTOP, AMC Trading CHAOS

Place72 made the decision to add $750 million, Melvin said on Monday, apart from accepting an investment decision of $2 billion from Citadel, the Chicago-dependent hedge fund led by Ken Griffin.

Stage72 declined to comment when contacted by Reuters.

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A spokesman for Melvin, launched in 2014 by Gabriel Plotkin, said the fund has closed out its posture in GameStop and repositioned the portfolio.

(Reporting by Juby Babu in Bengaluru Enhancing by Arun Koyyur)