Steven Cohen’s Fund Point 72 loses 15% amid GameStop frenzy: NYT –

Steven Cohen’s Fund Point 72 loses 15% amid GameStop frenzy: NYT

File photo: Steven Cohen, President and CEO of Point72 Asset Management, speaks at the Milken Institute Global Conference on May 2, 2016 in Beverly Hills, California, USA. REUTERS / Lucy Nicholson

(Reuters) – Point72 asset management of billionaire investor Steven Cohen has lost nearly 15% this year due to a sudden surge in shares of video game retailer Gametop Corp, the New York Times reported on Wednesday.

The report noted that the deficit at Point 72, which manages about $ 19 billion in assets, came from an investment in hedge fund Melvin Capital Management, which placed massive bets against Gametop.

But as GameStop gained 700% in the last two weeks, interest among amateur investors grew, causing Melvin to suffer a sudden loss.

One of the rescue teams was Cohen’s hedge fund, which has about $ 1 billion under management with Melvin, the NYT said.

Point72 decided to add $ 750 million, Melvin said on Monday, in addition to accepting a $ 2 billion investment from Citadel, a Chicago-based hedge fund led by Ken Griffin.

Point 72 declined to comment when contacted by Reuters.

A spokeswoman for Melvin, founded in 2014 by Gabriel Plotkin, said the fund closed its position in Gametop and remodeled the portfolio.

Reporting by Jubi Babu in Bengaluru; Editing by Arun Kayur


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