Gab Plotkin Net Worth: Gabriel “Gabe” Plotkin is an American hedge fund manager with a net worth of $ 400 million. Gab is best known for being the founder of Melvin Capital Management, a company in 2021 with a public space of redditers atop GameStop.
He graduated from Northwestern University in 2001 with an economics degree. After college, he went to work at the hedge fund Citadel LLC. He also worked for a Connecticut-based hedge fund called North Sound Capital and SAC Capital.
SAC Capital: He managed a fund of $ 1.3 billion worth of consumer stock at SAC Capital. According to federal prosecutors, SAC Capital was the recipient of insider information at some point during his time at Gabriel. In court filings, Plotkin was the so-called “portfolio manager B” and reportedly sent multiple emails from a fellow portfolio manager, which the SEC considered inside the information.
In 2013 the SAC pleaded guilty and agreed to pay $ 1.2 billion in penalties and $ 616 million paid to the SEC. Founder of SAC, Steven A. Cohen went on to repatriate all outside capital and instead established a family office, which he called Point 72 Montage Management. SAC was completely shut down in 2016.
Melvin capital: In view of the implications of SAC, in 2014, Gab Plotkin founded Melvin Capital Management. Named after Gab’s grandfather, the firm quickly raised $ 1 billion in capital.
In 2017, this being the first full year in operation, Melvin generated a 47% return on assets, making it the second-best performing hedge fund in the world (hedge fund with more than $ 1 billion in assets under management). . His compensation was $ 300 million after that year’s performance.
By 2018 the fund’s assets under management had grown to $ 3.5 billion.
The firm ended 2020 with $ 12.5 billion under management.
Gametop: In early 2021, members of Subredit R / WallStreetBates formed the basis for criticism aimed at fund managers such as Plotkin, who “shorted” the stocks of struggling companies. Redditers paid particular attention to the low sales of video game rental company GameStop, the smallest stock on the American exchanges.
Redditers banded together to demonstrate a “short squeeze”, where the stock price is sent rocketed upwards, causing small sellers to lose large amounts of money quickly.
Melvin Capital has lost 30% of its fund value, thanks to its huge small position at Gamespot very quickly. The deficit was so large that Melvin allegedly had to request a capital injection of $ 2.75 billion from Point 72 and the stronghold in exchange for the right to a portion of the fund’s future revenue.
According to the Wall Street Journal, Melvin Capital lost 53% on its investment in January 2021. According to the same article by the WSJ, Melvin started 2021 with assets of $ 12.5 billion and ended January with $ 8 billion – including $ 2.75 billion in capital.
Michael Jordan / Hornets Investments: In 2019, Gabe and another hedge fund manager bought a portion of Michael Jordan’s ownership stake in the NBA’s Charlotte Hornets. The acquisition valued the Hornets at $ 1.5 billion.
Personal life and real estate: In November 2020, Gabe paid a total of $ 44 million for two adjacent homes in North Bay Road in Miami, Florida. He filed plans with the city, showing plans to rinse a property and replace it with a tennis court and gardens. He also has property in New York City.
Gabe has been married to Yara Banks-Plotkin since 2006.