Melvin Capital and Light Street Capital's funds suffered further losses in May, the FT reported.- Hedge funds lost about $6 billion since the start of May over betting against meme-stocks.
- The latest decline takes Melvin's overall losses to 44.7% so far this year.
US hedge funds Melvin Capital and Light Street Capital, two short sellers hurt by the GameStop day-trader rebellion earlier this year, saw further declines in May, the Financial Times reported on Thursday.
New York-based Melvin, which lost more than 50% in January over its short positions on GameStop, lost another 4% last month, the report said, citing sources. That brings its overall losses so far this year to about 45%.
At the start of the year, a number of short-sellers lost over $5 billion as Reddit traders formed a snowballing momentum trade that caused
Although the value of Melvin's assets fell $4.5 billion in January from the end of 2020, they have since recovered to $11 billion as of June 1, the FT reported. The fund closed out all of its public short positions, including GameStop and
Other funds with extended losses include Palo Alto-based Light Street Capital, founded by Glen Kacher, who started his career at billionaire Julian Robertson's famous fund, Tiger Management.
Light Street, which had about $3.3 billion in assets under management at the start of the year, was hit by losses on short positions in the first-quarter, the FT said. After losing a further 3% in May, its flagship fund is now down more than 20% this year.
Melvin Capital declined to comment on FT's report, while Light Street could not be contacted.