Gabe Plotkin 'sMelvin Capital is raising money for a fund that betsstocks will rise, not fall.- Fundraising for Melvin Capital Long Only hasn't begun yet, a filing showed.
Melvin Capital, the hedge fund that lost $6.8 billion in January last year betting against
The New York-based fund, called Melvin Capital Long Only, is yet to take in any money as fundraising hasn't begun, the filing on Monday showed.
Its name suggests the fund will only bet that stocks will rise, not fall — a move away from a strategy that dominated the Reddit short-squeeze.
Melvin Capital was founded in 2014 by star portfolio manager Gabe Plotkin, one of the highest-earning in the business until 2019. He had previously been among Wall Street's most established traders at Steve Cohen's SAC Capital, where he worked until it closed down.
Money managers like Plotkin were torched by the army of Reddit traders who banded together in early 2021 to successfully push up prices of
Melvin, which had been
The firm ended 2021 with a 39.3% loss, having recovered some of its January losses, according to a source familiar with the matter.
Excluding January — that is, from February 1 to December 31 — Melvin gained 33.2% last year. At the start of 2022, its assets under management stood at $11.7 billion.
But US equities have had a rough start to 2022 as
This recent drop is similiar, but not quite, to Melvin's performance last January when it lost 53% over the GameStop-related Reddit rebellion.
Melvin declined to comment in response to an Insider request.