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Gabe Plotkin Net Worth: Who Is the CEO of Melvin Capital?

Gabriel Plotkin is the CEO of the hedge fund firm Melvin Capital Management, which has $3.5 billion in assets under management. Melvin Capital was established by Plotkin in the year 2014. He had a long history of success as a trader with Steve Cohen’s SAC Capital hedge fund, where he was one of the most notable traders.

Capital of SAC

In his time at SAC Capital, he was in charge of a $1.3 billion fund of consumer stocks. Federal prosecutors allege that Gabriel received insider information while working at SAC Capital. As “Portfolio Manager B,” Plotkin allegedly received numerous emails from a fellow portfolio manager that the SEC regarded to be inside knowledge, according to court records.

Gabe Plotkin Net Worth

As part of a plea deal in 2013, SAC agreed to pay $1.2 billion in fines and $616 million to the Securities and Exchange Commission (SEC). SAC’s founder, Steven A. Cohen, then returned all outside capital and founded a family business, Point72 Asset Management, instead. In 2016, SAC was completely defunct.

Melvin Investments

Melvin Capital Management was created in 2014 by Gabe Plotkin following the demise of SAC. An initial $1 billion in funding was raised very fast by the company named after Gabe’s paternal grandpa.

It was the second-best performing hedge fund in the world in 2017 (among hedge funds with more than $1 billion in assets under management) with a 47 per cent return on assets in its first full year of operation. He was paid $300 million as a result of that year’s performance.

The fund’s assets under management have grown to $3.5 billion by 2018. By the year 2020, the company had $12.5 billion in assets under its supervision.

GameStop

r/wallstreetbets members in early 2021 developed a tsunami of anger against fund managers who aggressively “shorted” the stock of faltering corporations. GameStop was the most shorted stock on the American stock market, so Redditors focused their attention on the short sales of the video game rental company.

When the price of a stock shoots up due to a “short squeeze” by a group of Redditor traders, the short sellers suffer significant losses. As a result of its huge short position in GameStop, Melvin Capital is said to have lost 30% of its fund value very quickly. There were so many losses that Melvin had to ask Point72 and Citadel for a $2.75 billion capital injection in exchange for a part of the fund’s future income.

A single month in 2021 saw Melvin Capital’s investments drop by 53%, according to the Wall Street Journal. That figure includes the $2.75 billion in capital Melvin has invested into the company since the beginning of 2021, according to the WSJ story.

Investment in the Michael Jordan/Hornets franchise

Michael Jordan’s ownership stake in the NBA’s Charlotte Hornets was purchased by Gabe and another hedge fund manager in 2019. After the deal was completed, the Hornets were valued at $1.5 billion.

Real Estate and Your Personal Life

Gabe paid $44 million for two Miami, Florida, properties on North Bay Road in November of 2020. He submitted plans to the city for the demolition of one of the properties and the construction of a tennis court and gardens in its place. In addition, he owns a home in New York. Since 2006, Gabe and Yara Bank-Plotkin have been married.

Theodore Plotkin Gabe Plotkin’s net worth Gabriel “Gabe” Plotkin, a hedge fund manager in the United States, with a net worth of $400 million. A Redditor feud in 2021 about GameStop made Gabe famous as the founder of Melvin Capital Management, a firm he founded.

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In 2001, he earned his Economics degree from Northwestern University. After graduating from college, he began working for Citadel LLC, a hedge company. He also worked for North Sound Capital and SAC Capital, two hedge funds based in Connecticut.

Plotkin’s Wife, Melvin’s Net Worth, and His Age

Friends, Melvin Capital Management LP was formed by American businessman and entrepreneur Gabriel Plotkin. At the hedge fund he founded, he currently holds the position of Chief Investment Officer (CIO). Plotkin started Melvin Capital Management LP, an American investment firm. He is currently the Chief Investment Officer of the hedge fund he founded.

Gabe Plotkin Net Worth

In the wake of the GameStop investing catastrophe, which resulted in billions of dollars in debt for hedgers shorting the stock, he has garnered a lot of attention. If you’ve never heard of Gabe Plotkin before, here are 10 facts you didn’t know about him.

Plotkin is the CEO of Melvin Capital Management, a $3.5 billion hedge fund firm.

Melvin Capital was launched in 2014 by Plotkin. He had previously been one of Steve Cohen’s SAC Capital hedge fund’s most renowned traders.
Consumer equities are the primary focus of Plotkin’s trading, and Melvin Capital saw net returns of 41% in 2017.
Melvin’s largest put position, ViacomCBS, saw a 50% gain in the month that ended on January 27, making it his greatest gain among the eight recently disclosed positions. During January, Melvin’s second-largest put position in Ligand Pharmaceuticals nearly quadrupled. Before reaching its all-time high on February 9th, the stock would increase another 13%.

However, Ollie’s Bargain Outlet Holdings, another bearish bet, saw its share price rise by roughly 30 per cent until January 27. There was a substantially smaller market value for Melvin’s put positions on the other stocks. Three of them saw their prices soar by the month’s end.

In addition to ADT and Kroger, there was also Tabula Rasa Healthcare on the list of companies to consider.

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In January, Melvin owned put positions on Trinity Industries and WW International, two equities that didn’t change significantly in price. Melvin was unavailable for comment when contacted by phone. At Sigma Capital Management, a SAC Capital branch, Plotkin worked as a trader and a consumer stock expert for eight years. He is the founder and CIO of Melvin. Melvin, which was released in 2014, grew by more than 46% in 2019 and 52% in 2020, according to market data.

What University Did Gabe Plotkin Attend?

The University of Northwestern
North Sound Capital and Citadel LLC were both founded by Ken Griffin’s hedge fund Citadel LLC after Gabriel Plotkin graduated from Northwestern University in 2001 with a degree in Economics.

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Plotkin worked as a trader at Steve Cohen’s SAC Capital before launching Melvin Capital, where he managed a $1.3 billion portfolio comprising largely consumer equities. According to federal prosecutors, Plotkin received illicit insider information while working at SAC Capital. “Portfolio Manager B” in the SEC’s civil complaint against Michael Steinberg, a fellow SAC PM who was arrested for allegedly trading Dell’s earnings based on insider knowledge, was identified as Plotkin by Reuters.”

Jonathan Chait, Who Are You?

Emails from Steinberg and others purportedly revealed insider information, according to Plotkin.

Foundation

After quitting SAC in the wake of the insider-trading scandal, Plotkin set up Melvin Capital in late 2014, naming it after his late grandpa, a small-business owner who passed away.

Gabe Plotkin Net Worth

He was able to raise a whopping $900 million. It’s a “highly human-intensive place,” CIO Gabe Plotkin told Bloomberg. Because we employ so many analysts, we expect a great deal from them. On the short side, he claimed there is “strong attention” to the fund as well (i.e. short selling).

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