Without Plotkin
Photographer: Alex Flynn / Bloomberg
Photographer: Alex Flynn / Bloomberg
Hedge fund titans Ken Griffin and Steve Cohen propelled those of Gabe Plotkin Melvin Capital, injected a total of $ 2.752 billion into the company after losing 15% in the first three weeks of the year.
Citadel funds and firm partners will invest $ 2 billion, meanwhile Point72 Asset Management’s investment will be $ 750 million, the companies said Monday.
The capital infusion comes after Melvin Capital, which started the year with assets of about $ 12.5 billion, has seen short bets, including GameStop Corp., twisted, causing heavy losses, according to a person familiar with the company.
Read more: How WallStreetBets Pushed GameStop Share on the Moon
This year’s stumble is rare for Plotkin. The company Melvin Capital has returned an average of 30% annually since it started in 2014.
“Gabe Plotkin and the team have delivered exceptional results throughout 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 exceptional investor and leader.”
Plotkin spent eight years at Cohen’s predecessor, SAC Capital Advisors, and has been one of the most successful derivations of that store. Cohen previously invested about $ 1 billion in Melvin.
“I’m very proud to collaborate with Ken Griffin and Steve Cohen,” Plotkin said. “Melvin’s team is eager to get to work and reward the trust of these two great investment icons.”
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