Plotkin Shuts Melvin Hedge Fund Reeling From Redditor Attack
- The firm never recovered from GameStop short squeeze in 2021
- ‘I now recognize that I need to step away,’ he tells clients
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More than a year after Gabe Plotkin’s Melvin Capital Management was grievously injured in a short squeeze by amateur traders who organized on Reddit, the $7.8 billion hedge fund is giving up and shutting down.
Plotkin’s abrupt decision, announced in a letter to clients Wednesday, ends his attempt at a long-shot comeback funded by some of Wall Street’s biggest players. The effort showed initial promise last year but unraveled in recent weeks as he racked up new losses and frustrated backers with a short-lived plan to reimpose fees.