Melvin Capital to Raise Money for a New Long-Only Fund
(Bloomberg) -- Gabriel Plotkin, the money manager who lost billions of dollars selling stocks short a year ago, plans to raise capital for a new fund called Melvin Capital Long Only LP.
His Melvin Capital Management has yet to take in any money for the fund, according to a U.S. Securities and Exchange Commission filing Monday. Plotkin also filed a separate notice for Melvin Capital Long Only Offshore Ltd., a Cayman Islands entity that would typically take in money from tax-exempt investors. No timetable was provided for when fundraising will begin.
Long-only funds in general invest in stocks their managers expect to rise while abstaining from short selling, a trading strategy designed to generate profits when stocks decline.
Todd Fogarty, an outside spokesman for Melvin, said the firm declined to comment.
Melvin Capital lost almost 55% last January after stocks that it had shorted, including GameStop Corp., soared during the month, propelled by retail investors who banded together on Reddit to bid the companies up.Â
The firm ended 2021 with a decline of 39.3%, having recovered some of its January losses. From Feb. 1 to Dec. 31, the fund gained 33.2%.
Read more: Plotkin's Melvin Capital Struggles to Shake Off Reddit Attack
©2022 Bloomberg L.P.
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