Citadel, Point 72 to Invest $2.75 Billion in Melvin

Gabe Plotkin Photographer: Alex Flynn/Bloomberg
Gabe Plotkin Photographer: Alex Flynn/Bloomberg

(Bloomberg) -- Citadel and Point72 Asset Management will invest $2.75 billion in Gabe Plotkin’s Melvin Capital.

Citadel’s funds and firm partners will invest $2 billion, according to the firm, while Point72’s investment will be $750 million.

The infusion of capital comes after Melvin Capital, which started the year with about $12.5 billion, lost 15% in the first few weeks of January on short positions, including GameStop Corp., according to a person familiar with the firm.

“Gabe Plotkin and team have delivered exceptional results over the history of Melvin,” Citadel’s Ken Griffin said in a statement. “We have great confidence in Gabe and his team.”

(Adds GameStop connection in third paragraph. A previous version of this story was corrected to fix an error in the headline.)