2 of the biggest hedge fund victims of GameStop's short-squeeze suffered more losses in May, report says
Melvin Capitaland 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%.
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
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.
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