Melvin Capital Surged 22% in February After GameStop Disaster

(Bloomberg) -- Gabe Plotkin’s Melvin Capital Management gained 22% in February, helping to reverse some of the heavy losses the firm suffered during a Reddit-inspired rally in stocks it had bet against, according to people familiar with the matter.

Melvin plunged 53% in January, after retail traders drove up shares of GameStop Corp. and AMC Entertainment Holdings Inc., among others. The hedge fund subsequently received a $2.75 billion cash injection, led by billionaires Steve Cohen and Ken Griffin. The people declined to say what drove last month’s gains.

A spokesman for New York-based Melvin Capital, which manages about $8 billion, declined to comment.

Read more: Plotkin Says Hedge Funds Will Adapt in Wake of GameStop Rout

Plotkin, 42, is considered to be among the best hedge fund stock-pickers. He had worked for Cohen for eight years, and was one of his biggest money-makers, before leaving to start his own firm. He gained 53% last year and has posted annualized returns of 30% since founding Melvin Capital at the end of 2014.

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