MILAN, 26 January (Reuters) – Evotec rose sharply on Tuesday amid market speculation that Melvin Capital Management is liquidating its positions in Germany, the drug maker got angry after some of its investments

Evotec shares rose 10% at one point on Tuesday Three traders said the move is likely related to Melvin Capital closing its short positions after losses on GameStop and other investments

Battery maker Varta rose for a similar reason, said a Germany-based trader, while shares in Polish video game company CD Projekt also saw strong demand over the past two sessions, Varta and CD Projekt shares are up nearly 20% increased

Melvin Capital, founded by Gabriel Plotkin in 2014, said it does not comment on positions and trades

Filings in Germany and Poland show that Melvin currently has a short position of 6.2% in Evotec, 435% in Varta and 105% in CD Projekt

Short sellers usually borrow and sell stocks they expect to fall in the hopes of buying them back at a lower price, paying back the loan, and pocketing the difference

As of last Friday, nearly 70% of Evotec stock available for loan was already on loan, data from FIS Astec Analytics showed stocks valued at nearly 660 million USD was borrowed – that’s nearly 13% of the company’s market cap

Melvin said Monday he would receive $ 2.75 billion in investments from Citadel, the Chicago-based hedge fund led by Ken Griffin, and billionaire Steven A. Cohen’s Point72 Asset Management

The infusion should help stabilize the hedge fund (reporting by Danilo Masoni; editing by Thyagaraju Adinarayan and Jane Merriman)

All offers were delayed by at least 15 minutes. For a full list of exchanges and delays, see

Melvin Capital

World News – FI – UPDATE 1 Evotec shares rise on speculation Melvin Capital closes short positions

Source: https://www.reuters.com/article/melvin-fund-evotec-de/update-1-evotec-shares-rise-amid-speculation-melvin-capital-closing-short-positions-idUSL8N2K150T