A hedge fund manager who suffered massive losses as part of the GameStop food frenzy is in the midst of expanding his $ 44 million Miami Beach home, it has emerged since the founder of GameStop he talked about his fun in the middle of the saga.
Gabe Plotkin, who founded Melvin Capital Management in 2014, saw his company lose 53% of its value in January, largely due to GameStop operations.
Plotkin, with an estimated value of $ 300 million, according to Forbes, had bet that the shares would fall in value: instead they skyrocketed as amateur investors participating in a Reddit forum began to increase the price.
His company was worth $ 12.5 billion at the beginning of the year, The Wall Street Journal reported Sunday, and now runs more than $ 8 billion.
Gabe Plotkin has seen his company, Melvin Capital, lose 53% during the month of January
Plotkin had strongly bet on the decline in the price of GameStop shares: instead, it rose
Melvin Capital stepped down from his position at GameStop after raising additional funds, Plotkin confirmed to CNBC last week.
Gary Kusin told CNBC that he had watched with interest as the value of his business increased
Gary Kusin, who founded GameStop in the 1980s, told CNBC that it was “a bit of an honor” for investors to turn to GameStop for his brief pressure attempt.
“I’m much more of a spectator than a participant,” he added. “I just grabbed some popcorn.”
Ben, son of Gary Kusin, had been an active member of the Reddit forum animating the company’s spectacular rally.
He told CNBC that his father and brother have been actively watching the drama unfold as GameStop shares skyrocketed to 2,000 percent a month to date.
“It was a world that collided when it fell,” Ben Kusin said.
When Plotkin settled for his losses, he was in the midst of serious work on his Miami property.
Plotkin paid $ 44 million in November for two neighboring houses in Miami
In the area surrounding the Plotkin property are Cindy Crawford and Josh Kushner
Plotkin paid $ 44 million for the two houses adjacent to 6342 and 6360 North Bay Road, Miami, in November, The Real Deal revealed last year.
The Portland, Maine-born financier plans to demolish the $ 12 million house he bought for $ 12 million and replace it with an illuminated tennis court.
The Real Deal reported that his attorney is expected to appear before the Miami Beach Design Review Board next week.
Plans presented in the city show that Plotkin plans to maintain the mansion at 6360 North Bay Road and replace the oceanfront home with service tracks, a new 1,316-square-foot cabin, a playground and an open space.
Plotkin married Yaara Bank-Plotkin in 2006, and the couple split their time between New York City, where they perform at their Upper East Side synagogue, and Florida.
Plotkin has powerful neighbors in the affluent Miami area.
Those living nearby include billionaire hedge fund manager Dan Loeb, Cindy Crawford and her husband Rande Gerber, and Karlie Kloss and Josh Kushner.
Plotkin, who graduated with a degree in economics from Northwestern University in 2001, worked for various hedge funds before joining Steve Cohen-based SAC Capital in 2006.
He was considered one of Cohen’s star protégés, until he left to found his own New York-based company in 2014.
On January 25, while Melvin was bleeding money, the firm of Cohen Point72 Asset Management and another company, Citadel LLC, injected $ 2.752 billion into Plotkin’s hedge fund.
According to the New York Times, hedge fund returns on Citadel fell three percent during the month, about a third of which was caused by a $ 2 billion investment he made in Melvin about a week ago. , as reported by two people on the results of Citadel.