Provide your email for confirmation

Tell us a bit about yourself

country *

Please provide your email address

welcome to Rappler

Login

To share your thoughts

Don't have an account?

Login with email

Check your inbox

We just sent a link to your inbox. Click the link to continue signing in. Can’t find it? Check your spam & junk mail.

Didn't get a link?

Use password?

Login with email

Reset password?

Please use the email you used to register and we will send you a link to reset your password

Check your inbox

We just sent a link to your inbox. Click the link to continue resetting your password. Can’t find it? Check your spam & junk mail.

Didn't get a link?

Sign up

Ready to get started

Already have an account?

Sign up with email

By signing up you agree to Rappler’s Terms and Conditions and Privacy

Check your inbox

We just sent a link to your inbox. Click the link to continue registering. Can’t find it? Check your spam & junk mail.

Didn't get a link?

Join Rappler+

Join Move

How often would you like to pay?

Annual Subscription

Monthly Subscription

Your payment was interrupted

Exiting the registration flow at this point will mean you will loose your progress

Your payment didn’t go through

Exiting the registration flow at this point will mean you will loose your progress

welcome to Rappler+

welcome to Move

welcome to Move & Rappler+

Melvin Capital ends January with over $8B in assets after investors 'added cash'

Melvin Capital, the hedge fund at the center of the GameStop drama, lost 53% in January but received commitments for fresh cash from investors in the last days of the month, a source familiar with the fund said on Sunday, January 31.

Melvin ended January with more than $8 billion in assets after having started the year with roughly $12.5 billion, the source said.

The firm, founded in 2014 by Gabe Plotkin, had bet that ailing video game retailer GameStop's stock, which traded at less than $5 5 months ago, would fall.

But a wave of retail investors, comparing notes on social media platform Reddit and using online trading app Robinhood, took the other side of Plotkin's trade to send the stock up 1,625% this month to close at $325 on Friday, January 29.

The Wall Street Journal first reported the loss.

"The fund's portfolio liquidity is strong. Use of leverage is at the lowest level since Melvin Capital's inception in 2014," the source said.

Hedge funds Point72 Asset Management and Citadel gave a $2.75-billion capital infusion to Melvin Capital earlier in the week, enabling it to close out that position with a large loss.

Citadel's hedge funds, along with founder Ken Griffin and firm partners, put $2 billion into Melvin. The funds lost less than 1% in January on their Melvin position and are down 3% overall for the month, a person familiar with the matter said on Sunday.

As news of losses at many hedge funds spread in recent days, speculation mounted about which firms might be forced to shut their doors. Several investors and fund managers said clients have been more patient with certain firms that have a long and strong track record, likely allowing them to survive this month's deep losses. – Rappler.com