Reuters
Melvin Capital to shrink after GameStop losses -source
Melvin, which lost nearly $7 billion early last year by betting on stocks like GameStop would tumble, is targeting a size of between $4.5 billion-$5 billion and told investors that its maximum total assets under management should remain between $6.5 billion and $7 billion until June 2027, when this threshold could be changed, the source said. To remain within this limit, Melvin intends to return capital to investors every time it reaches $7 billion for more than 90 consecutive days, according to the source who did not want to be identified because the discussions are private. Gabe Plotkin, the founder of Melvin, had been betting since 2014 that GameStop shares would tumble as the world shifts away from the brick-and-mortar video retailer’s offerings.