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 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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