Steven Cohen’s Point72 Asset Management suffered a loss of nearly 15% this year due to a sudden surge in GameStop Corp’s shares.
The losses at Point72, which manages nearly $19 billion in assets, came in part from its investment in hedge fund Melvin Capital Management, which had made a massive bet against GameStop, said a report from the New York Times.
In the last two weeks, shares of GameStop have soared 700% boosted by increased interest among amateur investors.
One of the rescuers was Cohen’s hedge fund, which has roughly $1 billion under management with Melvin, said NYT report.
According to Melvin, Point72 decided to add $750 million besides accepting an investment of $2 billion from Citadel, the Chicago-based hedge fund led by Ken Griffin.
Point72 declined comment.
In a statement Melvin’s spokesman said, the fund has closed out its position in GameStop and has repositioned its portfolio.