Hedge Fund Manager Plotkin Takes a Hit as Nintendo Stock Surges
- Plotkin’s Melvin Capital shorted $400 million before earnings
- Nintendo shares soar 7 percent after quarterly profit beat
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U.S. hedge fund manager Gabriel Plotkin made a risky bet by increasing his short position in Nintendo Co. just ahead of the company’s earnings report on Tuesday. He got it wrong, at least for the day.
The Japanese game maker reported earnings that beat estimates and sent shares climbing as much as 7 percent in Tokyo trading. Plotkin’s hedge fund Melvin Capital Management, based in New York, was short about $400 million worth of Nintendo’s stock, according to the latest regulatory filing on Tuesday. Trading volumes ahead of earnings indicate it’s unlikely he closed the position, resulting in paper losses of as much as $27 million from Wednesday’s share surge.