Plotkin's Melvin Capital to Wind Down - Report

May 18, 2022 5:37 PM EDT

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Gabe Plotkin’s Melvin Capital Management, a hedge fund that lost billions after its bearish wagers were caught up in a Reddit-fueled rally of buying stocks including GameStop (NYSE: GME), announced its plans to wind down funds and return cash to investors, Bloomberg News reported.

Plotkin wrote to investors about his decision to step away from managing external capital, noting they have not been able to deliver the returns investors should expect.

"The past 17 months has been an incredibly trying time for the firm and you, our investors," Plotkin wrote to investors. "I have given everything I could, but more recently that has not been enough to deliver the returns you should expect. I now recognize that I need to step away from managing external capital."

By Davit Kirakosyan

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