Steve Cohen Raises $1.5 Billion In Days To Fill Melvin (No) Capital Losses
One week after Steve Cohen’s Point72 invested $750MM in Melvin (No) Capital alongside Citadel’s Ken Griffen, only to suffer immediate losses as Melvin – run by Cohen’s former PM Gabe Plotkin – saw its losses balloon from 30% to 53% in just a few days as the marketwide short-squeeze forced the fund to unwind its billions in shorts at massive losses, and just one day after Charli Gasparino reported that Cohen opened his fund to new investors “amid losses at firm due to exposure to Melvin Capital”, the hedge fund has already secured a whopping $1.5 billion in commitments in a matter of days, Bloomberg reports citing people familiar with the matter.
Yet while Gasparino reported that Point72 was rising the capital in response to its Melvin Capital losses – and one certainly can’t deny that the timing is quite peculiar – according to Bloomberg, Point 72 “is raising the fresh cash because it sees investment opportunities in the market.”
Right – the same way that Robinhood just raised $4 billion because it is “seeing a flood of new clients.”
Oh, and the fact that the “legendary” hedge fund was down 9% in January has nothing at all to do with its scramble to raise an offsetting amount of new capital…
And while we would love to Steve Cohen for a comment for this story, sadly he deleted his twitter account over the weekend due to “threats”.
Meanwhile Gabe Plotkin, whose Melvin is a dead fund walking after the deluge of redemption requests coming in this week, remains busy adding a tennis court to his Miami beachfront mansion.
Tue, 02/02/2021 – 14:38