Melvin Capital, the hedge fund burned by GameStop,boost bet on reopening
Hedge fund management firm Melvin Capital Management experienced such a drastic loss of capital last year that it has announced it will no longer pursue short-biased strategies.Melvin Capital had been betting against GameStop since 2014, motivated by the eroding fundamentals of its outdated business model. And it had been winning — by 2020, the hedge fund had made over 30% returns by betting against GME.
But due to the "meme" stock frenzy that saw investors buying shares of GameStop in a short squeeze back in January 2021, Melvin had negative returns of 39% last year.Regulatory data shows that the hedge fund lost almost $7 billion by betting against stocks like GameStop.Struggling with compounding losses, Melvin Capital has now announced that it will create a new long-only fund. Now it disclosed its13F, let's see what hapend.
Melvin Capital Management doubled down on bets that benefit from the economic reopening.Melvin Capital Management took a new stake in $Uber(UBER)$ with 7.8M common shares, according to the fund's latest 13-F filing.The hedge fund also added to its already big bets on travel-related companies $Hilton(HLT)$ and $Expedia(EXPE)$. $Bath & Body Works Inc.(BBWI)$ was another choices for getting a boost from the economic reopening
Melvin Capital Management exited $MasterCard(MA)$ from 2M shares in the previous period; $Activision Blizzard(ATVI)$ from 1M, $McDonald's(MCD)$ from 1.07M and $Block(SQ)$ from 1.30M. It also trimmed stake in $Amazon.com(AMZN)$ to 50K shares from 70K, and $Snap Inc(SNAP)$ to 3.50M from 8.50M.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Fly moreee