GameStop Short Seller Melvin Gets $2.75B Funding From Citadel, Point72

GameStop Corporation (NYSE: GME) short seller Melvin Capital Management LP said Monday it had received $2.75 billion in investment from hedge funds Citadel and Point72.

What Happened: While Citadel and its partners are investing $2 billion, Point72 is pumping in $750 million into Melvin Capital, the firm’s CEO Gabriel Plotkin said in a statement.

“The team at Melvin is eager to get to work and reward the confidence of these two great investment icons,” said Plotkin.

Point72 has already invested $1 billion invested in Melvin, as of 2019. The investments are in Melvin’s fund and in non-controlling revenue shares of the company, according to Wall Street Journal.

Why It Matters: Melvin has lost 30% through Friday, thanks to a series of short bets including against GameStop.

https://finance.yahoo.com/news/gamestop-short-seller-melvin-gets-030105922.html