Melvin Capital Management LP is a New York City based investment firm. It was founded in the year 2014 by the American entrepreneur and businessman Gabriel “Gabe Plotkin”.
Gabe Plotkin named the firm after his late grandfather. He is currently serving as the Chief Investment Officer of the hedge fund that he established. This firm got a lot of attention during the beginning of this year, as it sustained losses of around 53 percent, during the GameStop short squeeze.
Melvin Capital largely invests in customer stocks and technology and reportedly had around $8 billion in AUM (assets under management), as of the records in January 2021. During the events GameStop short squeeze of 2021, the firm’s assets declined by almost 49 percent.
WHAT HAPPENED AFTER THE GAMESTOP SHORT SQUEEZE?
The reports on this matter suggest that Gabriel Plotkin suffered huge losses. His income in the year 2020 was allegedly $850 million and the losses were approximately around $460 million, as Melvin Capital lost 53 percent in January.
Gabriel Plotkin was also ranked among the top 15 hedge fund managers in 2020, but his income and this ranking both took a heavy beating as the year changed from 2020 to 2021.
His net worth took a detour and was reduced to almost half the amount he made last year. He discussed the proceedings of GameStop short squeeze in front of the U.S. House of Representatives’ Committee on Finance Services on Thursday, 18 February where he mentioned that his priority was to get the investors’ money back as soon as possible.
He said that he, and his team were taking all the important actions in their hands to make sure something like this never occurs in future and to protect their investors if something was to happen.