Photographer: Alex Flynn / Bloomberg
Photographer: Alex Flynn / Bloomberg
Melvin Capital Management, the hedge fund that lost billions of dollars after its rising bets were caught in a Reddit-fueled rally, saw its first quarter fall to 49%.
The fund fell 7 percent last month, reversing a nearly 22 percent gain a month earlier, according to people with knowledge of the issue. In January, the fund fell by 53%.
The company, founded by Gabe Plotkin, was among several that suffered heavy losses after retailers came together to push stocks including GameStop Corp. at our heights. Plotkin, who lacked the company, then took a $ 2.75 billion investment from the Citadel. Point72 Asset Management and others in January.
A company spokesman declined to comment.
Read more: Melvin Capital moves away from GameStop Fiasco with a 22% gain
Another company caught in the crosshairs of the GameStop saga, Maplelane Capital, which lost 45% in January, is starting to recover.
The fund rose 6.5% in February and 2.1% in March, according to people familiar with the issue, and ended the first quarter with a loss of 39.5%. One of the people said the fund benefited from its long and short bets on technology and consumer-focused companies.
One of the people said that Maplelane has been making money in 14 of the last 15 months.
The $ 3 billion New York company, led by Leon Shaulov and Rob Crespi, declined to comment.
Overall, the hedge fund industry struggled to make money last month amid higher volatility in the equity market. The average fund was roughly flat in March and gained 2.2% in the first quarter, according to Hedge Fund Research Inc. The S&P 500 index rose 4.2% in March and 6.2% for the quarter, with reinvested dividends.
Lone Pine Capital, Tiger Global Management and Whale Rock Capital Management, which often focuses on technology betting, made gloomy returns in March.
In the meantime, Glenview Capital, which ended 2020 with a 9.5% increase, despite sharp losses at the beginning of the year, grew 25% in its flagship fund through March, thanks to successful bets on healthcare stocks, including DXC Technology Co., Cigna Corp., AmerisourceBergen Corp. and McKesson Corp.
This is how other hedge funds fared in March and the first quarter, according to family members. Company representatives declined to comment.
| background | Strategy | March | Q1 |
|---|---|---|---|
| Glenview Offshore | equity | 7.8% | 25.4% |
| Hudson Bay International | equity | -0.2 | 9 |
| City | Multistrategy | 0.3 | 6 |
| DE Shaw Composite | Multistrategy | 1.4 | 5 |
| Master sculptor | Multistrategy | -0.2 | 3.5 |
| Millennium | Multistrategy | 0.2 | 3 |
| Balyasny Atlas Improved | Multistrategy | -0.4 | 1.8 |
| DE Shaw Oculus | Multistrategy | 1 | 1.5 |
| ExodusPoint | Multistrategy | 0.3 | 1 |
| Tiger Global | equity | -5.3 | 0.8 |
| The rebirth of RIDA | equity | 5 | -1 |
| RIDGE renaissance | equity | 3.6 | -3.4 |
| The rebirth of CRED | equity | 3.7 | -4.7 |
| Lone Pine | equity | -7 | -10 |
| Whale Rock | equity | -6 | -14 |
| Maplelane Capital | equity | 2.1 | -39.5 |
| Melvin capital | equity | -7 | -49 |
(Add the return graph to the bottom of the story.)