BOSTON (Reuters) – Hedge fund Melvin Capital Management, which had suffered heavy losses betting against video game retailer GameStop, has closed the position and repositioned the portfolio, a company spokesman said on Wednesday.
“Melvin Capital has repositioned our portfolio in recent days. We have closed our position in GME (GameStop), ”the spokesman said in a statement.
The spokesman also said the company, once one of Wall Street’s top-performing companies, is not going to collapse. “The reports on social media that Melvin Capital is going out of business are absolutely 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 nearly 30% in the first three weeks of January.
GameStop closed up 92.71% on Tuesday at $ 147.98 and is trading 65% before opening on Wednesday.
Reporting by Svea Herbst-Bayliss; edited by Jason Neely