 | |
| Industry | Investment management |
|---|---|
| Founded | 2014 |
| Founder | Gabriel Plotkin |
| Defunct | June 30, 2022 |
| Headquarters | New York City, U.S. |
Key people | |
| AUM | US$7.8 billion (Apr. 2022) |
| Subsidiaries | Melvin Capital II Offshore Ltd |
Melvin Capital Management LP was an American investment management firm based in New York City.[1] It was founded in 2014 by Gabriel Plotkin, who named the firm after his late grandfather.[1]
On May 18, 2022, Plotkin announced that the fund would close and return any remaining customer funds by June 2022. Its assets under management (AUM) in April 2022 were about $7.8 billion.[2]
Melvin Capital invested primarily in technology and consumer stocks and was noted for its high annual returns in comparison to other hedge funds.[3][4] It was reported to have $8 billion in AUM as of January 2021.[5]
During the GameStop short squeeze of 2021, it sustained losses of 53% or $6.8 billion, at one point losing more than a billion dollars a day;[5][6] in Q1 2021, the firm's assets declined 49%, and it finished 2021 down more than 39% on the year, during which the S&P 500 rose 28.7%.[6][7][8] Melvin Capital began January 2022 down 17%.[6]
- ^ a b Goldstein, Matthew (August 15, 2014). "A Former Top SAC Capital Trader Names New Hedge Fund". The New York Times. Archived from the original on October 1, 2019. Retrieved July 21, 2019.
- ^ Juliet Chung (May 18, 2022). "Melvin Capital to Close Funds, Return Cash to Investors". The Wall Street Journal. ISSN 0099-9660. Wikidata Q114844442. Retrieved June 20, 2023.
- ^ Cite error: The named reference
foxmanwas invoked but never defined (see the help page). - ^ Chung, Juliet; Pulliam, Susan; Michaels, Dave (August 11, 2022). "WSJ News Exclusive | SEC Investigating Melvin Capital Management". Wall Street Journal. ISSN 0099-9660. Retrieved August 14, 2023.
- ^ a b Cite error: The named reference
53%was invoked but never defined (see the help page). - ^ a b c Chung, Juliet (January 28, 2022). "Hedge Fund Melvin Lost $6.8 Billion in a Month. Winning It Back Is Taking a Lot Longer". Wall Street Journal. ISSN 0099-9660. Retrieved January 29, 2022.
- ^ Hema Parmar (April 9, 2021). "Plotkin's Melvin Capital Extends First-Quarter Losses to 49%". Bloomberg News. Wikidata Q119801331. Retrieved June 20, 2023.
- ^ Hema Parmar; Katherine Burton (December 30, 2021). "Hedge Funds Salvage 2021 Gains as Private Investments Shine". Bloomberg News. Wikidata Q119801414. Retrieved June 20, 2023.