A principal reason for the hit to Melvin Capital’s monthly performance were the massive losses the firm suffered when small investors bid up the stock of GameStop.
Melvin Capital Management, one of the hedge funds pilloried on social media message boards for its short-selling bets that GameStop shares would fall, lost 53 percent on its portfolio in January, a person familiar with the matter said. A principal reason was the huge losses the firm suffered when small investors bid up the stock of GameStop. The Wall Street Journal first reported the amount of Melvin Capital’s loss. Founded by Gabe Plotkin, a protégé of the hedge fund billionaire and New York Mets owner Steven A.
