Aug 07, 2019 (China Knowledge) - Wall Street billionaire Steven Cohen's hedge fund Point72 Asset Management has acquired a 5.1% stake in China's Luckin Coffee, according to a filing with the U.S. Securities and Exchange Commission yesterday.
The transaction gave Steven Cohen control over 17 million American depositary shares of Luckin, worth roughly USD 390 mln as of market close yesterday.
Cohen is one of the most successful hedge fund managers on Wall Street, known as founder of SAC Capital Advisors. However, Cohen is not the first Wall Street giant to bet on China's Luckin Coffee. In April, BlackRock invested USD 150 mln in Luckin ahead of its IPO.
Luckin Coffee which was founded less than 2 years ago in October 2017 has managed to expand rapidly in the country and is now only second to Starbucks. The startup aims to open more stores to bring its total to 4,500 locations in the country by the end of this year, surpassing Starbucks.
Last year, Luckin Coffee recorded a net loss of USD 241.3 million on USD 125.3 mln of sales last year. In addition, the company has also made a loss of USD 82.2 mln during the first quarter this year.
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