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Griffin’s Citadel plans to redeem $500 million from Melvin Capital



© Reuters. FILE PHOTO: Kenneth Griffin, CEO of Citadel, is seen in a framegrab from stay video as he testifies about inventory buying and selling and GameStop, throughout a completely digital listening to of the U.S. Home of Representatives Committee on Monetary Providers entitled “Recreation

(Reuters) – Kenneth Griffin’s Citadel LLC and Citadel companions are planning to redeem about $500 million of the $2 billion they invested in Melvin Capital, the Wall Road Journal reported https://www.wsj.com/articles/citadel-to-redeem-about-500-million-from-melvin-capital-11629550410?mod=latest_headlines on Saturday, citing folks acquainted with the matter.

Along with Steven A. Cohen’s Point72 Asset Administration, Griffin’s Citadel had invested $2.75 billion in January into Melvin Capital, the hedge fund which was on the middle of the GameStop (NYSE:) buying and selling frenzy earlier this yr.

In keeping with the WSJ, it couldn’t decide whether or not Citadel plans to redeem more cash later. Citadel is predicted to stay a big investor, the report added, citing an individual acquainted with the matter.

Melvin Capital, the fund based by Gabe Plotkin, misplaced 49% on its investments through the first three months of 2021, an individual acquainted with the matter advised Reuters in April.

Melvin had established itself as a powerful performer posting annualized returns of 30% between 2014 and 2020.

However Plotkin had guess the retailer GameStop’s inventory value would tumble after which confronted off with retail merchants who used on-line buying and selling apps and exchanged data on Reddit’s WallStreetBets discussion board to push the inventory value considerably increased within the early weeks of January.

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