$7.8 billion hedge fund closes

Dusseldorf The hedge fund Melvin Capital draws conclusions from the Gamestop disaster in January last year: In a letter, the fund founder Gabe Plotkin informed his customers of the end of the 7.8 billion dollar hedge fund.

Melvin Capital had bet its investors’ fortunes on falling prices for the video game retail chain. However, in January 202, the Gamestop price skyrocketed. The reason: Small investors joined forces on the WallStreetBets Reddit forum to drive the share price up – and, among other things, to put pressure on the multi-billion dollar hedge fund. In January 2021 alone, Melvin Capital recorded resulting in a loss of 55 percent.