Although this is CNN, people interested in this story should read this article about Melvin Capital:
https://www.cnn.com/2022/05/19/investing/melvin-capital-hedge-fund-closes/index.html
While it's true that the fund is shutting down, it is nowhere near worried about "infinite losses."
It lost 39% in 2021 and another 23% this year. Sounds bad ... BUT ... that's AFTER making 52% in 2020, and 30% PER YEAR for the 5 years before that.
From its inception in 2014 until today, when it is shutting down, it made GAINS averaging 11.9% per year -- that's WITH the GME losses factored into the total returns.
It's a bear market, and the guy running it probably can't figure out what to do, so he's just closing the fund (and crying all the way to the bank with his investment managment fees).
The important point is this: Anyone telling you that hedge funds (see??? Even Melvin Capital is going BUST!!!) ... are going to lose "infinity" dollars ... is full of shit.
Although this is CNN, people interested in this story should read this article about Melvin Capital:
https://www.cnn.com/2022/05/19/investing/melvin-capital-hedge-fund-closes/index.html
While it's true that the fund is shutting down, it is nowhere near worried about "infinite losses."
It lost 39% in 2021 and another 23% this year. Sounds bad ... BUT ... that's AFTER making 52% in 2020, and 30% PER YEAR for the 5 years before that.
From its inception in 2014 until today, when it is shutting down, it made GAINS averating 11.9% per year -- that's WITH the GME losses factored into the total returns.
It's a bear market, and the guy running it probably can't figure out what to do, so he's just closing the fund (and crying all the way to the bank with his investment managment fees).
The important point is this: Anyone telling you that hedge funds (see??? Even Melvin Capital is going BUST!!!) ... are going to lose "infinity" dollars ... is full of shit.
Although this is CNN, people interested in this story should read this article about Melvin Capital:
https://www.cnn.com/2022/05/19/investing/melvin-capital-hedge-fund-closes/index.html
While it's true that the fund is shutting down, it is nowhere near worried about "infinite losses."
It lost 39% in 2021 and another 23% this year. Sounds bad ... BUT ... that's AFTER making 52% in 2020, and 30% PER YEAR for the 5 years before that.
From its inception in 2014 until today, when it is shutting down, it made GAINS averating 11.9% per year -- that's WITH the GME losses factored into the total returns.
It's a bear market, and the guy running it probably can't figure out what to do, so he's just closing the fund (and crying all the way to the bank with is investment managment fees).
The important point is this: Anyone telling you that hedge funds (see??? Even Melvin Capital is going BUST!!!) ... are going to lose "infinity" dollars ... is full of shit.
Although this is CNN, people interested in this story should read this article about Melvin Capital:
https://www.cnn.com/2022/05/19/investing/melvin-capital-hedge-fund-closes/index.html
While it's true that the fund is shutting down, it is nowhere near worried about "infinite losses."
It lost 39% in 2021 and another 23% this year. Sounds bad ... BUT ... that's AFTER making 52% in 2020, and 30% PER YEAR for the 5 years before that.
From its inception in 2014 until today, when it is shutting down, it made GAINS averating 11.9% per year -- that WITH the GME losses factored into the total fund.
It's a bear market, and the guy running it probably can't figure out what to do, so he's just closing the fund (and crying all the way to the bank with is investment managment fees).
The important point is this: Anyone telling you that hedge funds (see??? Even Melvin Capital is going BUST!!!) ... are going to lose "infinity" dollars ... is full of shit.