<p><img src="https://static2.businessinsider.com/image/60c32d8c23393a00188e2973-2358/Screenshot 2021-06-11 at 10.23.54.png" border="0" alt="AMC and GameStop" data-mce-source="Noam Galai/SOPA Images/Getty" data-mce-caption="AMC and GameStop"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>US hedge funds Melvin Capital and Light Street Capital, two short sellers hurt by the <a href="https://businessinsider.mx/how-reddit-day-traders-are-using-the-platform-to-upend-the-stock-market-and-make-money-in-the-process/">GameStop day-trader rebellion</a> earlier this year, saw further declines in May, the <a href="https://www.ft.com/content/ca1090ba-c3aa-446c-8406-7ce0e01bb510">Financial Times</a> reported on Thursday.</p><p>New York-based Melvin, which <a href="https://www.businessinsider.com/melvin-capital-lost-53-percent-january-after-gamestop-shares-skyrocketed-2021-1'utm_source=markets&utm_medium=ingest">lost more than 50% in January</a> over its short positions on <a href="https://markets.businessinsider.com/stocks/gme-stock">GameStop</a>, lost another 4% last month, the report said, citing sources. That brings its overall losses so far this year to about 45%.</p><p>Meme stock short-sellers have continued to be squeezed as retail investors remain bullish on popular names like <a href="https://markets.businessinsider.com/stocks/bbby-stock">Bed Bath & Beyond</a>, <a href="https://markets.businessinsider.com/stocks/amc-stock">AMC</a>, <a href="https://markets.businessinsider.com/stocks/bb-stock">BlackBerry</a>, and <a href="https://markets.businessinsider.com/stocks/clov-stock">Clover Health</a>. Total hedge fund losses from betting against this pack of stocks amount to $6 billion since the start of May, the FT said, citing data from Ortex Analytics. </p><p>At the start of the year, a <a href="https://www.businessinsider.in/finance/news/these-hedge-funds-have-got-torched-by-the-wall-street-bets-army-that-targeted-their-short-positions-in-gamestop/slidelist/80515509.cms">number of short-sellers</a> lost over $5 billion as Reddit traders formed a snowballing momentum trade that caused GameStop shares to skyrocket. <a href="https://www.businessinsider.com/how-short-selling-works-why-it-didnt-work-on-gamestop-2021-1'utm_source=markets&utm_medium=ingest">Shorting a stock</a> means an investor is betting a company's share price will fall. The opposite of this is "going long," which reflects a belief the price will rise. </p><p>Although the value of Melvin's assets fell $4.5 billion in January from the end of 2020, they have since recovered to $11 billion as of June 1, the FT reported. The fund <a href="https://markets.businessinsider.com/news/stocks/melvin-capital-closes-out-public-short-positions-after-gamestop-losses-2021-5-1030447490">closed out all of its public short positions</a>, including GameStop and AMC, in the first three months of the year. But it could still have some traditional short positions that aren't required to be publicly disclosed.</p><p>Other funds with extended losses include Palo Alto-based Light Street Capital, founded by Glen Kacher, who started his career at billionaire Julian Robertson's famous fund, Tiger Management.</p><p>Light Street, which had about $3.3 billion in assets under management at the start of the year, was hit by losses on short positions in the first-quarter, the FT said. After losing a further 3% in May, its flagship fund is now down more than 20% this year.</p><p>Melvin Capital declined to comment on FT's report, while Light Street could not be contacted.</p><p><a href="https://markets.businessinsider.com/news/stocks/gamestop-short-squeeze-melvin-capital-light-street-losses-meme-stocks-2021-6-1030515597#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/bpa-plastic-containers-bad-health-risks-obesity-heart-disease-diabetes-2019-2">Why I'm throwing away every plastic thing in my kitchen ASAP</a></p>
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