LOS ANGELES (CelebrityAccess) — On Friday, Live Nation revealed that hedge fund Melvin Capital expanded its holdings of the promoter-giant’s stock, adding more than 8.4 million new shares.
The latest purchase increased Melvin Capital’s total holdings to 6.1% of Live Nation’s outstanding stock, representing a cool $1.52bn based on the company’s share price at the close of trading on Friday.
This is the second time in three months that Melvin Capital purchased shares in Live Nation and follows a similar large purchase in September.
If you recognize the name Melvin Capital, it might be from earlier this year when the hedge fund suffered significant losses as retail investors trampled on Melvin’s plan to short the stock of video game retailer Gamestop (GME).
According to media reports at the time, Melvin and other investors short positions on GME accounted for 139% of the company’s outstanding shares as bets that the price would fall proved unfounded amid retail trader enthusiasm for the stock.
At the end of first half of 2021, Melvin’s fund was down by 46%, according to Bloomberg.