Melvin Capital Losses: Staggering 20.6% First Quarter of 2022

Melvin Capital Losses 2022
Gabe Plotkin – Melvin Capital Losses 2022 Q1

(Bloomberg) Gabe Plotkin’s Melvin Capital suffered a whopping 20.6% loss its first quarter of 2022.

The company short on AMC and GameStop continues to rollover its losses from last year’s bets on ‘meme stocks’.

The hedge fund also suffered a 50% loss its first quarter of 2021 last year.

We’ve seen hedge funds face massive adversity as retail investors buy stock in an illiquid market.

Let’s break it down together.

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Gabe Plotkin’s Melvin Capital starts shaky 2022

Melvin Capital Logo
Melvin Capital Losses first quarter 2022

The New-York based hedge fund ended 2021 with 39% in losses, via. Bloomberg and fell 3.8% in March of 2022.

It’s been another rough start for the ‘meme stock’ short seller as sources report Gabe Plotkin’s Melvin Capital ends its first quarter with a 20.6% loss.

The losses in March marked a consecutive streak of losses for three months in a row.

People asked Bloomberg not to be identified as the information has been private.

We saw Ken Griffin’s Citadel pull out $2 billion from Gabe Plotkin’s Melvin Capital earlier this year as the hedge fund struggled to surface from deep waters.

But Citadel wasn’t the only one who pulled its money from the struggling hedge fund.

Point72 Asset Management retrieved their initial investment of $750 million from Melvin.

Gabe Plotkin saw losses of 20.6% in his hedge fund and more than $2.7 billion in redemptions its first quarter of 2022.

Other hedge funds facing turmoil in 2022

In recent news we’ve seen several hedge funds and financial institutions face rocky valleys going into 2022.

Investors in Coatue Management have requested to pull out more than $250 million from the hedge fund.

However, they have not been able to meet their clients demands as clearing houses currently face a liquidity crisis.

The hedge fund said the money investors were asking for in redemptions was invested in ‘private companies’.

Due to the Russian-Ukraine conflict, more than 100 hedge funds have billions stranded in the Cayman Islands.

Hedge funds affected by these frozen accounts include Millennium Management, Sculptor, Apollo, and Citadel.

You can read more about that mess here.

Another hedge fund who saw more losses than Gabe Plotkin’s Melvin Capital entering 2022 was Chase Coleman’s Tiger Global Management.

The hedge fund sunk a massive 34% this year.

And the list goes on.

Read Market News for the latest news in the community.

Will hedge funds default this year?

90% of you said Melvin Capital will be the next hedge fund to default this year.

We saw Archegos, Anchorage Capital, and Mudrick default last year.

Is this a pattern we’re going to begin seeing again this year?

I’d love to hear your thoughts on this, leave a comment below.

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3 Comments

  1. Jim Aherne

    What altcoins are you investing this year Frank

  2. Filippo

    If all these Hedge Funds are in so difficult moments, why Amc is still going down towards the price of 2 weeks ago?

  3. Frank Nez

    Let’s start a discussion!

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