Melvin Capital
American investment management firm / From Wikipedia, the free encyclopedia
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Melvin Capital Management LP was an American investment management firm based in New York City.[1] It was founded in 2014 by Gabriel Plotkin, who named the firm after his late grandfather.[1]
Industry | Investment management |
---|---|
Founded | 2014; 10 years ago (2014) |
Founder | Gabriel Plotkin |
Defunct | June 30, 2022; 22 months ago (2022-06-30) |
Headquarters | New York City, U.S. |
Key people | |
AUM | US$7.8 billion (Apr. 2022) |
Subsidiaries | Melvin Capital II Offshore Ltd |
On May 18, 2022, Plotkin announced that the fund would close and return any remaining customer funds by June 2022. Its assets under management (AUM) in April 2022 were about $7.8 billion.[2]
Melvin Capital invested primarily in technology and consumer stocks and was noted for its high annual returns in comparison to other hedge funds.[3][4] It was reported to have $8 billion in AUM as of January 2021.[5]
During the GameStop short squeeze of 2021, it sustained losses of 53% or $6.8 billion, at one point losing more than a billion dollars a day;[5][6] in Q1 2021, the firm's assets declined 49%, and it finished 2021 down more than 39% on the year, during which the S&P 500 rose 28.7%.[6][7][8] Melvin Capital began January 2022 down 17%.[6]