Aug 21 (Reuters) - Kenneth Griffin"s Citadel LLC and Citadel partners are planning to redeem about $500 million of the $2 billion they invested in Melvin Capital, the Wall Street Journal reported on Saturday, citing people familiar with the matter. Together with Steven A. Cohen"s Point72 Asset Management, Griffin"s Citadel had invested $2.75 billion in January into Melvin Capital, the hedge fund which was at the center of the GameStop (GME.N) trading frenzy earlier this year. According to the WSJ, it could not determine whether Citadel plans to redeem more money later. Citadel is expected to remain a large investor, the report added, citing a person familiar with the matter. Melvin Capital, the fund founded by Gabe Plotkin, lost 49% on its investments during the first three months of 2021, a person familiar with the matter told Reuters in April. read more Melvin had established itself as a strong performer posting annualized returns of 30% between 2014 and 2020. But Plotkin had bet the retailer GameStop"s stock price would tumble and then faced off with retail traders who used online trading apps and exchanged information on Reddit"s WallStreetBets forum to push the stock price significantly higher in the early weeks of January.