8/11, 6:07 PM (Source: TeleTrader)
more TeleTrader news

SEC investigating Melvin Capital over meme stocks - report

The United States Securities and Exchange Commission (SEC) is investigating investment management firm Melvin Capital Management LP in the aftermath of the "meme-stock rally" that took place in 2021, The Wall Street Journal reported on Thursday. Sources with knowledge of the matter told the newspaper that the agency is looking into whether hedge fund's executives informed their investors about risks market events at the time could have brought.

Melvin Capital lost at least $6 billion during the "meme-stock" frenzy that took over US stock markets in January last year. Retail investors used Reddit to coordinate the effort of buying stocks that were shorted by big hedge funds, including Melvin Capital, which suffered heavy losses as a result. Melvin recently announced a decision to return money to its investors.

Baha Breaking News (BBN) / MS