Gabe Plotkin
Photographer: Alex Flynn / Bloomberg
Photographer: Alex Flynn / Bloomberg
Hedge fund titans Ken Griffin and Steve Cohen backed Gabe Plotkin Melvin Capital, bringing in a total of $ 2.75 billion into the industry after losing 15% in the first three weeks of the year.
Citadel and firm partners invest $ 2 billion, while Point72 Asset Management’s investment will be at $ 750 million, the companies said Monday.
The capital inflow comes after Melvin Capital, which started the year with around $ 12.5 billion in assets, saw a short-term bet, take on GameStop Corp., go awful, spewing huge losses, according to someone familiar with the company.
Read more: How WallStreetBets Pressed GameStop Sections for the moon
This year’s stumble is rare for Plotkin. Melvin Capital has returned an average of 30% in the year since its inception in 2014.
“Gabe Plotkin and the team have delivered outstanding results over Melvin’s history,” Citadel founder Ken Griffin said in a statement. “We have great confidence in Gabe and his team.”
In a statement, Cohen said he has known Plotkin since 2006 and “is an outstanding investor and director.”
Plotkin spent eight years at Cohen’s former firm, SAC Capital Councilors, and has been one of the most successful companies in the store. Cohen previously raised about $ 1 billion in Melvin.
“I am extremely proud to partner with Ken Griffin and Steve Cohen,” Plotkin said. “Melvin’s team are keen to get the job done and inspire those two big investment icons. “
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