(Bloomberg) – Melvin Capital Management, the once-high-flying hedge fund that lost billions of dollars after its clumsy input was caught in a boom fueled by Reddit, saw its decline in the first quarter rise to 49%.
According to people with knowledge of the matter, the fund decreased by 7% last month, which reversed a profit of almost 22% the previous month. In January, the fund fell by 53%.
The firm, founded by Gabe Plotkin, was among many who suffered huge losses after retailers banded together to push stocks, including GameStop Corp., to new heights. Plotkin, which was the company short, then took a $ 2.75 billion investment from Citadel, Point72 Asset Management and others.
Plotkin was called by Congress in February to testify about the debacle. He told lawmakers that the hedge fund industry would adapt to avoid the kinds of market dynamics that led to the loss of its fund.
A spokesman for the firm declined to comment.
Another firm caught in the crosshairs of the GameStop saga, Maplelane Capital, which lost 45% in January, is starting to recover.
According to people familiar with the matter, the fund rose 6.5% in February and 2.1% in March, ending the first quarter with a loss of 39.5%. One of the people said that the fund has benefited from its long and short inputs on technology and consumer-oriented businesses.
One of the people has been earning money from Maplelane for 14 of the last 15 months.
The $ 3 billion New York-based company, led by Leon Shaulov and Rob Crespi, declined to comment.
Overall, the hedge fund industry struggled to make money last month amid volatility in the stock market. The average fund was around flat in March and, according to Hedge Fund Research Inc. increased by 2.2% in the first quarter. The S&P 500 index rose 4.2% in March and 6.2% for the quarter, with dividends reinvested.
Lone Pine Capital, Tiger Global Management and Whale Rock Capital Management, which often focus on technology betting, achieved gloomy March returns.
Meanwhile, Glenview Capital, which ended 2020 with a 9.5% increase, despite strong losses earlier in the year, rose 25% in its flagship fund until March thanks to successful investments in healthcare stocks, including DXC Technology Co., Cigna Corp., AmerisourceBergen. Corp. and McKesson Corp.
Here’s how other hedge funds, according to celebrities, performed in March and in the first quarter. Representatives of the firms declined to comment.
(Add congressional evidence in the fourth paragraph. An earlier version corrected Hudson Bay’s strategy in the graph.)
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