(Bloomberg) -- Ken Griffin’s Citadel is pulling back most of its $2 billion investment in Melvin Capital Management.
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.
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.
Representatives for Citadel, Melvin and Point72 declined to comment.
The Wall Street Journal reported the move earlier Thursday.
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