Melvin Capital plans to close its funds and return the cash to its investors, capping a stunning reversal for a firm that lost big on the surge in meme stocks in the early days of the pandemic.
In a letter to investors that was reviewed by The Wall Street Journal, Gabe Plotkin, Melvin’s founder, disclosed the winding down of the funds, saying, “The past 17 months has been an incredibly trying time.”Its executives as recently as last week had been soliciting clients for their thoughts on what new fee arrangements seemed fair to them and to Melvin going forward.
While Melvin made up some of its huge January 2021 losses from the rally in GameStop Corp. GME, -8.87% and other so-called meme stocks, its focus on fast-growing companies dealt it further setbacks this year as investors soured on such stocks and its losses widened. This year through April, Melvin had lost 23%. Since its start, it has averaged an 11.9% return.This could be a lost decade for stocks.
Wondering if they actually closed out their short positions or was that when they let the market be green for a minute lol
I'm crying, im so upset this happened to them, I have to call off work tomorrow to grieve
Boooom goes the dynamite 🔥
LOL
Haha
Haha return cash to investors
LOL
this is really sad
This is why the rich want to keep you as dumb and un-united as possible. So you can’t break them while they try and break you.