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Revision as of 23:21, 25 January 2021 editDeltagammaz (talk | contribs)Extended confirmed users530 edits citadel investment and lossesTag: Visual edit← Previous edit Revision as of 23:59, 25 January 2021 edit undo2a02:8084:255f:5280:491:64c4:1f44:7dbf (talk) →HistoryNext edit →
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In September 2020 the name of company showed up in the Polish Short Sale Registry ({{lang|pl|Rejestr Krótkiej Sprzedaży}}) because of a short position in game developers ], a net position of 0.55 percent through the Polish stock exchange(GPW).<ref>https://stooq.pl/mol/?id=14901</ref><ref>https://rss.knf.gov.pl/RssOuterView/faces/hspsList.xhtml</ref> They gained considerably due to the problems faced during the launch of ]. In September 2020 the name of company showed up in the Polish Short Sale Registry ({{lang|pl|Rejestr Krótkiej Sprzedaży}}) because of a short position in game developers ], a net position of 0.55 percent through the Polish stock exchange(GPW).<ref>https://stooq.pl/mol/?id=14901</ref><ref>https://rss.knf.gov.pl/RssOuterView/faces/hspsList.xhtml</ref> They gained considerably due to the problems faced during the launch of ].


In early 2021 the fund lost 30% due to numerous short bets which went awry including ]. The popular subreddit ] made wide spread bets GameStop's stock would increase in value. WSB won with Gamestop surging nearly 300%. In January 2021, ] ] and ] ] "bailed out" Melvin with a $2.75 billion investment in exchange for non-controlling revenue shares of the fund.<ref>{{Cite news|last=Chung|first=Juliet|date=2021-01-25|title=WSJ News Exclusive {{!}} Citadel, Point72 to Invest $2.75 Billion Into Melvin Capital Management|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/citadel-point72-to-invest-2-75-billion-into-melvin-capital-management-11611604340|access-date=2021-01-25|issn=0099-9660}}</ref><ref>{{Cite news|last=McCabe|first=Caitlin|date=2021-01-14|title=GameStop Stock Soars, and Social-Media Traders Claim Victory|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/gamestop-stock-soars-and-social-media-traders-claim-victory-11610653679|access-date=2021-01-23|issn=0099-9660}}</ref> The shortcoming of Melvin, one of the best performing hedge funds in recent years, reflects the general trend of losses by short sellers during a time when major indexes have soared to records.<ref>{{Cite news|last=Chung|first=Juliet|date=2021-01-22|title=WSJ News Exclusive {{!}} Short Bets Pummel Hot Hedge Fund Melvin Capital|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/short-bets-pummel-hot-hedge-fund-melvin-capital-11611349217|access-date=2021-01-23|issn=0099-9660}}</ref><ref>{{Cite web|date=2021-01-25|title=Ken Griffin's $2 billion bet|url=https://www.chicagobusiness.com/finance-banking/ken-griffins-2-billion-bet|access-date=2021-01-25|website=Crain's Chicago Business|language=en}}</ref> In early 2021 the fund lost 30% due to numerous short bets which went awry including ]. The popular subreddit ] made wide spread bets GameStop's stock would increase in value. WSB won with Gamestop surging nearly 300% and may increase to the moon by February. In January 2021, ] ] and ] ] "bailed out" Melvin with a $2.75 billion investment in exchange for non-controlling revenue shares of the fund.<ref>{{Cite news|last=Chung|first=Juliet|date=2021-01-25|title=WSJ News Exclusive {{!}} Citadel, Point72 to Invest $2.75 Billion Into Melvin Capital Management|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/citadel-point72-to-invest-2-75-billion-into-melvin-capital-management-11611604340|access-date=2021-01-25|issn=0099-9660}}</ref><ref>{{Cite news|last=McCabe|first=Caitlin|date=2021-01-14|title=GameStop Stock Soars, and Social-Media Traders Claim Victory|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/gamestop-stock-soars-and-social-media-traders-claim-victory-11610653679|access-date=2021-01-23|issn=0099-9660}}</ref> The shortcoming of Melvin, one of the best performing hedge funds in recent years, reflects the general trend of losses by short sellers during a time when major indexes have soared to records.<ref>{{Cite news|last=Chung|first=Juliet|date=2021-01-22|title=WSJ News Exclusive {{!}} Short Bets Pummel Hot Hedge Fund Melvin Capital|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/short-bets-pummel-hot-hedge-fund-melvin-capital-11611349217|access-date=2021-01-23|issn=0099-9660}}</ref><ref>{{Cite web|date=2021-01-25|title=Ken Griffin's $2 billion bet|url=https://www.chicagobusiness.com/finance-banking/ken-griffins-2-billion-bet|access-date=2021-01-25|website=Crain's Chicago Business|language=en}}</ref>


== References == == References ==

Revision as of 23:59, 25 January 2021

This article is an orphan, as no other articles link to it. Please introduce links to this page from related articles; try the Find link tool for suggestions. (October 2020)
Investment management firm
Melvin Capital Management
Company typeLimited liability company
IndustryInvestment Management
Founded2014
HeadquartersNew York, New York, United States
Key peopleGabriel Plotkin, Founder and Chief Investment Officer
AUMUS$12.5 billion (Dec 2020)
Websitewww.melvincapital.com

Melvin Capital Management LP is a New York City-based investment management firm founded in 2014 by Gabriel Plotkin. It invests primarily in tech and consumer stocks and is reported to have $12.5 billion in assets under management, as of December 2020.

History

Plotkin founded Melvin Capital in late 2014, naming the fund after his late grandfather who was a small-business owner. He raised nearly $1 billion.

In its first full year in operation, Melvin Capital had returns of 47%, ranking it 2nd in Bloomberg's 2015 list of top-performing funds with $1 billion or more in assets under management.

In 2017, the fund finished up 41%. Current notable investments include Chewy.com, Amazon.com, Las Vegas Sands, Alibaba, and Gamestop.

Prior to starting Melvin Capital, Plotkin was a trader at SAC Capital where he managed a portfolio of mostly consumer stocks valued at about $1.3 billion. According to The Wall Street Journal, about one-third of the gains in 2019 from Steve Cohen's current hedge fund, Point72, came from Melvin Capital Management LP.

In September 2020 the name of company showed up in the Polish Short Sale Registry (Rejestr Krótkiej Sprzedaży) because of a short position in game developers CD Projekt, a net position of 0.55 percent through the Polish stock exchange(GPW). They gained considerably due to the problems faced during the launch of Cyberpunk 2077.

In early 2021 the fund lost 30% due to numerous short bets which went awry including GameStop. The popular subreddit wallstreetbets made wide spread bets GameStop's stock would increase in value. WSB won with Gamestop surging nearly 300% and may increase to the moon by February. In January 2021, Ken Griffin's Citadel and Steve Cohen's Point72 "bailed out" Melvin with a $2.75 billion investment in exchange for non-controlling revenue shares of the fund. The shortcoming of Melvin, one of the best performing hedge funds in recent years, reflects the general trend of losses by short sellers during a time when major indexes have soared to records.

References

  1. ^ Goldstein, Matthew (15 August 2014). "A Former Top SAC Capital Trader Names New Hedge Fund". The New York Times. Retrieved 21 July 2019.
  2. ^ Saacks, Bradly (28 June 2019). "One of this year's top hedge funds has been $7 billion Melvin Capital run by a former top money-maker for Steve Cohen". Business Insider. Retrieved 15 July 2019.
  3. Alden, William; Goldstein, Matthew (17 February 2015). "Seeing Value After a Plunge, Hedge Funds Bet on Energy Stocks". The New York Times. Retrieved 15 July 2019.
  4. Foxman, Simone (23 February 2016). "This SAC Alum Stands Out in Hedge Fund Rankings". Bloomberg News. Retrieved 15 July 2019.
  5. "Hedge fund rankings 2015". Bloomberg. 29 February 2016. Retrieved 15 July 2019.
  6. Vardi, Nathan (17 April 2018). "The 25 Highest-Earning Hedge Fund Managers And Traders". Forbes. Retrieved 15 July 2019.
  7. "Melvin Capital - Current Investments". Fintel.io. Retrieved 10 October 2019.
  8. Levy, Rachael (5 August 2019). "An Outside Hedge Fund Is Driving Steve Cohen's Gains". The Wall Street Journal. Retrieved 10 August 2019.
  9. https://stooq.pl/mol/?id=14901
  10. https://rss.knf.gov.pl/RssOuterView/faces/hspsList.xhtml
  11. Chung, Juliet (2021-01-25). "WSJ News Exclusive | Citadel, Point72 to Invest $2.75 Billion Into Melvin Capital Management". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-01-25.
  12. McCabe, Caitlin (2021-01-14). "GameStop Stock Soars, and Social-Media Traders Claim Victory". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-01-23.
  13. Chung, Juliet (2021-01-22). "WSJ News Exclusive | Short Bets Pummel Hot Hedge Fund Melvin Capital". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-01-23.
  14. "Ken Griffin's $2 billion bet". Crain's Chicago Business. 2021-01-25. Retrieved 2021-01-25.

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