Investment management is not only about buying and selling, it mainly refers to the handling of various financial assets. The manager of an investment firm works on short or long-term strategies for acquiring or disposing of portfolio holdings. It is all about managing an investment portfolio and trading them to achieve a specific goal. There are several investment management firms and offering various services to their clients. Melvin Capital LP is one of the popular investment management firms in New York founded in 2014 by Gabe Plotkin. Take a lookat the below points to know about the founder and firm.
Gabriel Plotkin had completed a degree in Economics from Northwestern University. After his graduation, he joined the hedge fund named Citadel. Later, he joined Steve Cohen’s SAC Capitalas a trader. He managed the portfolio of consumer stocks valued at about $1.3 billion.
Gabe Plotkin founded Melvin Capital after leaving SAC in 2014, he named the fund after his late grandfather. The Management firm provides portfolio management for pooled investment vehicles, and also they provide management for businesses. Apart from these services, they don’t engage in other business activities.
Melvin Capital has performed well in the first year, and the return on investment is high which made the company position second in top-performing funds. In 2019, hedge fund Point72 one-third of the gains are from Melvin Capital Management. Plotkin able to earn a lot in 2017, and later in December 2020, he purchased two adjacent houses in Florida for $44 million.
The funds collapsed in January 2021 that made the firm lost billions of dollars. Then Plotkin took a $2.75 billion investment from Citadel and Point72 hedge funds and others. They have struggledto make money amid higher equity market volatility. The company once performed well is now facing several losses hoping to get back its position as early as possible.