{"id":162943,"date":"2021-01-26T03:10:04","date_gmt":"2021-01-26T00:10:04","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/this-short-seller-just-got-a-2-75-billion-bailout\/"},"modified":"2021-01-26T03:10:04","modified_gmt":"2021-01-26T00:10:04","slug":"this-short-seller-just-got-a-2-75-billion-bailout","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/this-short-seller-just-got-a-2-75-billion-bailout\/","title":{"rendered":"#This short seller just got a $2.75 billion bailout"},"content":{"rendered":"

“#This short seller just got a $2.75 billion bailout<\/strong>”
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Hedge fund giants Steve Cohen and Ken Griffin are joining forces to bail out a fellow trader whose positions in runaway stocks like Game<\/a>Stop have been getting hammered.<\/p>\n

Griffin\u2019s Citadel and Cohen\u2019s Point72 Asset Management are investing a combined $2.75 billion into Melvin Capital Management, which has seen its recent bets on stock declines thwarted by a small army of investors with get-rich-quick dreams. <\/p>\n

The fund, run by ex-Cohen lieutenant Gabe Plotkin, is down 30 percent, the Wall Street Journal reported. <\/p>\n

The bailout comes as retail investors swarm online forums like Reddit<\/a> board \u201cwallstreetbets\u201d to push each other to invest in cheap stocks with short positions against them using no-fee trading sites like Robinhood.<\/p>\n

GameStop, which Plotkin has been betting against, had a short interest of 102 percent of its outstanding shares on Friday, making it a prime target for sending a stock higher through what\u2019s known as a short squeeze.<\/p>\n

Shares in GameStop soared roughly 178 percent between Thursday\u2019s close and early trading Monday as investors sought to squeeze short sellers like Plotkin and Andrew Left, who complained last week of being threatened over his predictions that the stock would fall.<\/p>\n

\u201cHe was short in a market that no longer allows people to stay short,\u201d complained one hedgie. \u201cToday, you take a position after doing the work then some guys on Reddit use their phones to buy penny stocks and you end up with your face ripped off. It\u2019s nuts.\u201d<\/p>\n

\u201cI\u2019ve known Gabe Plotkin since 2006 and he is an exceptional investor and leader,\u201d said Cohen, who will add $750 million to his existing investment in the fund. \u201cWe are pleased to have the opportunity to invest additional capital and take a non-controlling revenue share in Melvin Capital.\u201d<\/p>\n

Melvin Capital saw a gain of 47 percent in 2019 after losing money in 2018. About one-third Point72\u2019s 2019 performance come from its $1 billion stake in Melvin.<\/p>\n

Griffin and Cohen have openly competed for trading talent in the past, with Griffin once even hiring \u2014 and then firing \u2014 Cohen\u2019s brother-in-law at Citadel.<\/p>\n

But Plotkin \u2014 and hopes he will recover from the chaos \u2014 app<\/a>ears to have united the two men.<\/p>\n

\u201cGabe Plotkin and team have delivered exceptional results over the history of Melvin,\u201d Griffin said in a statement to The Post after confirming that Citadel and its partners will pump $2 billion onto Melvin\u2019s books. \u201cWe have great confidence in Gabe and his team.\u201d<\/p>\n

\u201cIf Ken Griffin is giving $2 billion to Gabe Plotkin, he\u2019s not doing it to be a nice guy,\u201d said another hedge fund manager. \u201cHe clearly thinks Plotkin is going to bounce back.\u201d\n <\/p><\/div>\n

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If you want to read more News<\/a> articles, you can visit our News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n

Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#This short seller just got a $2.75 billion bailout” Hedge fund giants Steve Cohen and Ken Griffin are joining forces to bail out a fellow trader whose positions in runaway stocks like GameStop have been getting hammered. Griffin\u2019s Citadel and Cohen\u2019s Point72 Asset Management are investing a combined $2.75 billion into Melvin Capital Management, which…<\/p>\n","protected":false},"author":1,"featured_media":162944,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2020\/10\/Steve-Cohen-3.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[90716,71070,86806,73785,88639,71541],"class_list":["post-162943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-1-25-21","tag-hedge-funds","tag-ken-griffin","tag-markets","tag-point72-asset-management","tag-steve-cohen"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/162943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=162943"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/162943\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/162944"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=162943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=162943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=162943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}