Citadel trims $2 billion stake in Melvin Capital via /r/wallstreetbets


Citadel trims $2 billion stake in Melvin Capital

Citadel trims $2 billion stake in Melvin Capital

Citadel LLC is reducing its $2 billion stake in Melvin Capital Management, Wall Street Journal reported today. The move came just after the hedge fund struggled to rebound out of a relatively close collapse prompted by early-year rises in GameStop Corp. and some other “meme stocks.” Citadel sought to retrieve half the investment it and its associates still possess in Melvin’s hedge fund in late January. Moreover, post trimming their stake late last year, Melvin stacked up double-digit deficits again for the second time in  January straight, according to sources familiar with the matter.

According to the sources, the most recent withdrawal application will be cashed out by the March end. During January 2021, Citadel and also its affiliates put in $2 billion, with $750 million coming by Steven A. Cohen’s Point72 Asset Management, in return for a share of Melvin’s charges during the coming three years.

Submitted February 24, 2022 at 05:29PM by Narrow_Feeling9985
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