This is a story that Gabe Plotkin probably wishes would not have gotten out, but it has, and it’s a bad look for the owner of a hedge fund called Melvin Capital. Fresh off one of, if not the worst month of his professional career, a month that saw Melvin Capital’s assets diminish by 53 percent, word leaked that Plotkin is in the middle of a $44 million redevelopment of his huge mansion in Miami.
Construction crews were literally working on his South Florida estate In the midst of the GameStop trading frenzy that attacked, and annihilated short-sellers like Plotkin. His firm literally lost $12.5 billion, primarily because of the online trading fueled by the Reddit form r/WallStreetBets.
His rough month would get worse, when Plotkin had to rely on an emergency cash bailout of $2.75 billion from Steve Cohen, a hedge fund owner who also owns the New York Mets, and Plotkin’s former boss Ken Griffin. There was concern and speculation that the GameStop debacle could have potentially bankrupted Melvin Capital, which prompted the emergency cash infusion.
Plotkin bought two waterfront houses on Miami Beach, and his plans were to knock down one of the homes and replace it with a huge cabana, playground and recreational spaces. The Real Deal reported that Pltokin’s attorney was expected to go before the Miami Beach Design Review Board to get the plans okayed next week.
There is a bit of good news for Plotkin. He’ll have some very rich neighbors, including billionaire hedge fund manager Dan Loeb, Cindy Crawford and Randy Gerber, along with Josh Kushner and Ivanka Trump. So if Plotkin had cash issues again, there’s a lot of doors to knock on to ask for a loan.