BOSTON (Reuters) – Hedge fund Melvin Capital Management, which suffered heavy losses by betting against video game retailer GameStop, closed the position and repositioned the portfolio, a company spokesman said on Wednesday.
“Melvin Capital has repositioned our portfolio in the past few days. We closed our position at GME (GameStop), ”said the spokesman in a statement.
The spokesman also said that the company, which was once one of the best companies on Wall Street, is not collapsing. “Publications on social media about Melvin Capital’s bankruptcy are categorically false,” he said.
Earlier this week, prominent hedge funds Citadel and Point72 Asset Management extended a $ 2.75 billion financial lifeline to the fund. People familiar with the fund said it lost almost 30% in the first three weeks of January.
GameStop closed up 92.71% on Tuesday at $ 147.98 and is trading up 65% before opening on Wednesday.
Reporting by Svea Herbst-Bayliss; edition by Jason Neely