Photographer: Alex Flynn / Bloomberg
Photographer: Alex Flynn / Bloomberg
Melvin Capital Management, the once-high-flying hedge fund that lost billions of dollars after its bearish bets mired in a Reddit-driven rally, saw its first-quarter decline expand to 49%.
The fund was down 7% last month, reversing a gain of almost 22% the month before, according to people in the know. In January the fund fell by 53%.
Founded by Gabe Plotkin, the company was one of many to experience heavy losses after retailers banded together to increase its stock, including GameStop Corp. to new heights. Plotkin, who had been short of the company, then took a $ 2.75 billion investment from Citadel, Point72 Asset Management and others in January.
A company spokesperson declined to comment.
Read more: Melvin Capital dust-free from GameStop Fiasco with 22% profit
Another company stuck in the reticle 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 matter, and ended the first quarter with a loss of 39.5%. The fund benefited from its long and short bets on technology and consumer-focused companies, one said.
Maplelane has made money in 14 of the past 15 months, one said.
The $ 3 billion New York-based company run by Leon Shaulov and Rob Crespi declined to comment.
Overall, the hedge fund industry struggled to make money last month amid higher stock market volatility. According to Hedge Fund Research Inc. the average fund rose about the same in March and rose 2.2% in the first quarter. The S&P 500 index rose 4.2% in March and 6.2% in the quarter, with dividends reinvested.
Lone Pine Capital, Tiger Global Management and Whale Rock Capital Management, which often focuses on technical betting, posted dismal results in March.
Meanwhile, Glenview Capital, which ended 2020 with a profit of 9.5% despite hefty losses earlier this year, rose 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.
Here’s how other hedge funds fared in March and the first quarter, according to celebrities. Company representatives declined to comment.
| Fund | Strategy | March | V1 |
|---|---|---|---|
| Glenview Offshore | Equity | 7.8% | 25.4% |
| Hudson Bay International | Equity | -0.2 | 9 |
| Citadel | Multi-strategy | 0.3 | 6 |
| DE Shaw Composite | Multi-strategy | 1.4 | 5 |
| Sculptor Master | Multi-strategy | -0.2 | 3.5 |
| Millennium | Multi-strategy | 0.2 | 3 |
| Balyasny Atlas improved | Multi-strategy | -0.4 | 1.8 |
| BY Shaw Oculus | Multi-strategy | 1 | 1.5 |
| ExodusPoint | Multi-strategy | 0.3 | 1 |
| Tiger Global | Equity | -5.3 | 0.8 |
| Renaissance RIDA | Equity | 5 | -1 |
| Renaissance RIDGE | Equity | 3.6 | -3.4 |
| Renaissance CRED | Equity | 3.7 | -4.7 |
| Lonely pine tree | Equity | -7 | -10 |
| Whale Rock | Equity | -6 | -14 |
| Maplelane capital | Equity | 2.1 | -39.5 |
| Melvin Capital | Equity | -7 | -49 |
Adds a return diagram at the bottom of the story.