Melvin Capital and Light Street Capital, both from the US hedge fundIn January, the meme stocks, which suffered more losses in May, suffered a sharp evolution of huge stocks among retail investors as they rose again.
Melvin, victim of the highest profile in the first meme stock rally in January, he lost another 4 percent in May, people who knew the numbers said.
People said the loss of the fund this year is about 44.7 percent. The US stock S&P 500 index rose 0.6% last month and rose nearly 12% in the first five months of the year.
According to Ortex Analytics data, due to bets against five well-known meme stocks, coverage losses from GameStop, Bed Bath & Beyond, AMC, BlackBerry and Clover Health total about $ 6 billion. Peter Hillerberg, founder of Ortex, said the funds have recently reduced short positions in meme stocks, but that short interest rates remain at “very high levels”.
New York’s Melvin, who directs Steve Cohen’s sponsorship of Gabe Plotkin, was found in the middle of the GameStop saga in January. Melvin’s performance fell 53 percent amid a stratospheric rise in share prices.
The fund, which had a $ 4.5 million drop in its assets in January since the end of last year, received An investment of $ 2.75 million shortly after Cohen’s Point72 Asset Management and Ken Griffin’s Citadel.
Melvin’s assets have since risen to $ 11 billion since June 1, according to a person familiar with the company. After seeing how much the company was losing, Melvin said it was he has taken out the bet The risk against GameStop and its investments was reduced, although there were further losses last month.
Shares like GameStop, AMC and BlackBerry were launched in late January, as amateur investors coordinated their actions on forums like Reddit, and in some cases channeled hedge funds directly.
After the downturn, these stocks have risen again in recent weeks. The rallies have hurt both short sellers who bet directly against the shares, as well as managers who have short positions in other stocks that have been stable in the next market, or other short sellers while betting.
Others who lost money were Light Street Capital, founded by Glen Kacher, known as the Tiger Cub, who previously worked for Julian Robertson’s Tiger Management.
Earlier this year, the company, which managed about $ 3.3 billion in assets, hit the first quarter. Its core fund lost another 3 per cent in May and has now fallen by 20.1% this year, according to numbers sent to investors. He said the losses in the first quarter of the fund were losses in the short film, said a person familiar with the location.
Melvin and Light Street refused.
Uncovered – Markets, finance and strong opinion
Robert Armstrong examines the most important market trends and discusses how the best intelligence on Wall Street responds to them. Give your name here send the newsletter directly to the mailbox every week