The hedge fund lost 53% in January, gained 22% in February, and then slid another 7% in March.
One lawsuit said that buying restrictions were imposed only on retail investors, not institutions, when the GameStop frenzy peaked in late January.
The gain for Melvin Capital came after Gabe Plotkin's hedge fund lost 53% in January when day-traders targeted its short positions.
Amid the GameStop short-squeeze last month, Elon Musk tweeted, "Gamestonk!!" with a link to Reddit's WallStreetBets forum.
Assuming Melvin Capital still owns its full Facebook stake, the hedge fund will need much stronger performance to offset the GameStop loss.
Steve Cohen’s Point72 and Ken Griffin’s Citadel are investing $US2.75 billion in Melvin Capital. Melvin is down about 30% this year as its short positions are getting hammered. Day traders have bid up the stock prices of GameStop, Bed Bath & Beyond, and other popular shorts. Visit Business Insider’s homepage […]
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