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Melvin Struggles to Shake Reddit Attack With 46% Loss So Far

  • Hedge fund is said to have gained about 1% last month
  • Founder Plotkin has said he would adjust his shorting strategy
Bloomberg business news
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Gabe Plotkin’s Melvin Capital Management ended the first half of 2021 down 46% as the hedge fund struggled to bounce back from a vicious attack by Reddit traders on its short positions.

The firm, which plunged in January as its bearish bets on companies including GameStop Corp. and AMC Entertainment Holdings Inc. were besieged by a retail-driven buying spree, was up about 1% in June, according to people familiar with the matter. Melvin now calculates its loss in the first month of the year at almost 55%, compared with a preliminary estimate of 53%, the people said.