The hedge fund Melvin Capital, which has been at the heart of the GameStop frenzy, lost about 53% in January, The Wall Street Journal has reported. 

What Happened

Founded in 2014 by Gabe Plotkin, a former portfolio manager for Steve Cohen, Melvin ended January with more than $8 billion in assets, after starting the year with roughly $12.5 billion, according to WSJ.

The $8 billion includes $2.75 billion in funds that Citadel LLC and Cohen’s Point72 Asset Management put into the hedge fund last Monday as Melvin faced losses throughout its portfolio, including steep ones from those against GameStop Corp. (GME).

According to the Wall Street Journal, Citadel, its partners, and Point72 have lost money on the Melvin deal so far. However, the report says some new and existing clients have shown interest in investing money in Melvin by Monday, Feb. 1. 

Why It Matters

Hedge funds have been at the center of the extreme short-squeeze plays that have transpired over the past few weeks, in a drama portrayed as everyday retail traders taking the fight to Wall Street hedge funds. GameStop has been the chief stock among them, though it is not the only one by any means.