You are currently viewing Kens Friends: A deep dive into Gabriel Plotkin

Kens Friends: A deep dive into Gabriel Plotkin


Annoy Ken Griffin - Share This

This post is part of the Kens Friends series, which was taken from some research by a Reddit user u/Meticulous.

Deep Dive into Gabriel Plotkin

TADR

Gabriel Plotkin, Stephen A. Cohen, and Ken Griffin have a longer history than you might think.0. TLDR

This is the first part of my Key Players series where we take a deep dive into who’s who and their role within the GameStop saga. The intent of this series is not to put on my tinfoil hat and connect dots where unnecessary, it is simply to aggregate publicly available information on the internet.

While I have cited multiple sources throughout this DD, take everything with a grain of salt, validate it, and call me out if something is incorrect.

If you want to avoid all of the Lego memes on Reddit, you’ll be able to find all of my updates on wikAPEdia.1. Overview

Gabriel Plotkin is an American businessman and entrepreneur who graduated from Northwestern University in 2001 with a bachelor’s degree in Economics. He founded Melvin Capital Management LP in 2014 and is currently the Chief Investment Officer.[1]

In 2019, Plotkin purchased a minority interest in the Charlotte Hornets from Michael Jordan.

During 2020, Plotkin earned over $800 million in compensation, however, $460 million was lost during January of 2021 due to his funds collapsing.[11]

r/DeepFuckingValue - Deep Dive into Gabriel Plotkin

2. Early Career

After college, he started his career at Ken Griffin’s hedge fund firm Citadel. Gabriel then became an analyst at North Sound Capital, a hedge fund in Connecticut. In 2006, he joined SAC Capital (better known as Point72 Asset Management) founded by Stephen A. Cohen.[2]3. SAC Capital (Point72)

Within five years of starting at Cohen’s firm, Plotkin and his team managed a portfolio of mostly consumer product stocks valued at $1.3 billion.[3] [4]

Not only was Gabriel one of a few managers at the firm managing a large portfolio, he was one of the highest-paid professionals at the firm where he kept 30 percent of his profits. Most of his colleagues earned anywhere between 15 percent and 25 percent.[4]

In 2013, SAC Capital pleaded guilty to federal insider trading charges and paid a $1.8 billion fine.[5] In March of 2014, SAC Capital transferred the bulk of its assets to Point72.[6] While Plotkin’s name surfaced in email involving the insider trading trial, he was not charged with any wrongdoing.[3]

Plotkin left Point72 Asset Management at the end of November to start his own hedge fund, Melvin Capital. where Cohen agreed to invest up to $200 million.[2] [3]4. Melvin Capital

Melvin Capital was founded in 2014, raising nearly $1 billion from outside investors. According to a Bloomberg articlePlotkin stated that the fund has an “intense focus” on the short side (i.e. shorting selling).[1]

In Melvin’s first full year in operation, the firm had returns of 47%, which was ranked 2nd best in Bloomberg’s 2015 list of top-performing funds managing $1 billion or more in assets.[1] [7]

In 2017, the fund finished up 41% with notable investments in Chewy, Amazon, Las Vegas Sands, Alibaba and shorting GameStop.[1]

In 2021, Citadel LLC and Point Asset Management invested $2 billion into Melvin Capital to help stabilize the firm which had lost 53% through the end of January[9], in exchange for non-controlling revenue shares of the fund.[8]

At the end of Q1 2021, Melvin reported losses of 49%.[10] Melvin is still struggling after ending the first half of 2021 with a 46% loss.[12]

r/DeepFuckingValue - Deep Dive into Gabriel Plotkin

5. Sources

  1. Melvin Capital Wikipedia
  2. Bloomberg – Ex-Point72 Manager Plotkin to Raise $700 million
  3. Dealbook NY Times – Former Top SAC Capital Trader Names New Hedge Fund
  4. Investment News – Senior Manager at SAC Capital Indicted for Fraud
  5. Dealbook NY Times – After a Decade, SAC Capital Blinks
  6. Point72 Asset Management Wikipedia
  7. Bloomberg – Hedge Fund Rankings 2015
  8. WSJ – Citadel, Point72 to Invest $2.75 billion into Melvin
  9. Fintel – 2017 13F Melvin Capital
  10. Reuters – Melvin Capital Lost 49% on Q1 Investments
  11. Bloomberg – Chase Coleman Leads $23 billion Payday for 15 Hedge Fund Earners
  12. Business Insider – Hedge Fund ends First Half with a 46% Loss

Disclaimer: This is not financial advise, nor am I a financial advisor.


Ken Griffin Lies makes no guarantees of accuracy of any of the information contained within this post. This is an unedited post taken from an anonymous Reddit user. This deep dive into Gabriel Plotkin should not be regarded as an accurate history of anything. This is not financial or legal advice. We eat crayons, so don’t take our word for anything.

Want to read the next part in the series of Kens Friends, this time a deep dive into Steven Cohen? You can here.


Annoy Ken Griffin - Share This