Melvin Confirms $2.75 Billion Investment from Citadel and Point72 Following Losses, Including GameStop (GME) Short

Melvin Capital Management today announced that Citadel and its partners and Point72 have made investments into its fund.

Melvin is said to have lost 30% year-to-date through Friday, the Wall Street Journal reported citing people familiar with the matter. The losses are said to stem from short bets gone wrong, including a short bet against surging video game retailer GameStop (NYSE: GME).

"I am incredibly proud to partner with Ken Griffin and Steve Cohen," said Melvin Founder and CEO Gabriel Plotkin. "The team at Melvin is eager to get to work and reward the confidence of these two great investment icons."

The $2.75 billion investment includes $2 billion from Citadel and its partners and $750 million from Point72, and both are taking a non-controlling revenue share in Melvin.

"Gabe Plotkin and team have delivered exceptional results over the history of Melvin. We have great confidence in Gabe and his team," said Ken Griffin, Founder and CEO of Citadel.

"I've known Gabe Plotkin since 2006 and he is an exceptional investor and leader. We are pleased to have the opportunity to invest additional capital and take a non-controlling revenue share in Melvin Capital," said Steve Cohen, Chairman and CEO of Point72.

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