Ken Griffin’s Citadel Is Pulling Back Most of Its $2 Billion Melvin Capital Investment
(Bloomberg) — Ken Griffin’s Citadel is pulling back most of its $2 billion investment in Melvin Capital Management.
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Citadel funds and firm partners asked for $500 million back last month after redeeming $1 billion last year, according to a person familiar with the matter. The January redemption will be paid out by the end of March.
The move comes after Melvin ended 2021 with a 39% loss and fell an additional 15% in January.
Read more: Melvin Has Another Bad January After Raising $6 Billion in 2021
Citadel first invested in Melvin in January 2021 when Melvin’s short wagers were under attack from Reddit-inspired retail traders. Gabe Plotkin’s fund sank nearly 55% that month alone. Point72 Asset Management also invested $750 million at that time. In exchange, the investors received a non-controlling revenue share in the hedge fund.
Melvin later attracted an additional $3.2 billion in fresh cash, and the firm had $11.7 billion in assets at the beginning of this year.
Point72 hasn’t redeemed its investment, a person familiar said.
Read more: Citadel to Pull $500 Million From Melvin Amid Plotkin’s Rebound
Representatives for Citadel, Melvin and Point72 declined to comment.
The Wall Street Journal reported the move earlier Thursday.
(Adds timing of redemption in second paragraph.)
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