(Bloomberg) — Hedge fund titans Ken Griffin and Steve Cohen boosted Gabe Plotkin’s Melvin Capital, injecting a total of $2.75 billion into the firm after it lost 15% in the first three weeks of the year.
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Gabe Plotkin
Citadel funds and firm partners will invest $2 billion, while Point72 Asset Management’s investment will be $750 million, the firms said Monday.
The capital infusion comes after Melvin Capital, which started the year with about $12.5 billion in assets, has seen short bets, including on GameStop Corp., go awry, spurring big losses, according to a person familiar with the firm.
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This year’s stumble is rare for Plotkin. Melvin Capital firm has returned an average 30% a year since it started in 2014.
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“Gabe Plotkin and team have delivered exceptional results over the history of Melvin,” 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 “he is an exceptional investor and leader.”
Plotkin spent eight years at Cohen’s predecessor firm, SAC Capital Advisors, and has been one of that shop’s most successful spin-outs. Cohen previously invested about $1 billion in Melvin.
“I am incredibly proud to partner with Ken Griffin and Steve Cohen,” Plotkin said. “The team at Melvin is eager to get to work and reward the confidence of these two great investment icons.”
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