REUTERS: Billionaire investor Steven Cohen's Point72 Asset Management has suffered a nearly 15per cent loss this year due to a sudden surge in the shares of video-game retailer GameStop Corp, the New York Times reported https://nyti.ms/2YiotoW on Wednesday.
The losses at Point72, which manages nearly US$19 billion in assets, came in part from its investment in hedge fund Melvin Capital Management, which had made a massive bet against GameStop, the report said.
But as GameStop soared 700per cent over the past two weeks, boosted by increased interest among amateur investors, Melvin faced sudden losses.
One of the rescuers was Cohen's hedge fund, which has roughly US$1 billion under management with Melvin, NYT said.
Point72 decided to add US$750 million, Melvin said on Monday, besides accepting an investment of US$2 billion from Citadel, the Chicago-based hedge fund led by Ken Griffin.
Point72 declined to comment when contacted by Reuters.
A spokesman for Melvin, founded in 2014 by Gabriel Plotkin, said the fund has closed out its position in GameStop and repositioned the portfolio.
(Reporting by Juby Babu in Bengaluru; Editing by Arun Koyyur)