Gabe Plotkin is an American businessman and the founder of Melvin Capital, a hedge fund that suffered huge losses due to the GameStop stock frenzy in early 2021. Plotkin, who was once one of the top earners in the industry, saw his fortune shrink by billions of dollars as a result of his bets against the video game retailer. But who is the man behind the headlines, and what is his personal life like? Here are some facts about Gabe Plotkin, his wife, his lifestyle, his background, and his current status.
Plotkin’s Wife: Yaara Bank-Plotkin
Gabriel Plotkin is married to Yaara Bank-Plotkin, a New York native and a journalism graduate from New York University. The couple tied the knot in 2006 and have two children, a son named Eytan and a daughter whose name is unknown.
Yaara is involved in charitable work, especially with the Belev Echad program, which helps victims of terror and injured Israeli soldiers. She once hosted 10 of the program participants for breakfast at her home, saying that it was a way to give back to those who protect Israel and Jews all over the world.
Yaara and Gabe are both from Jewish families and grew up on the East Coast. Gabe was born in Portland, Maine, and attended Northwestern University, where he graduated with a degree in economics in 2001. Yaara’s parents are Israeli immigrants who settled in Queens, New York.
Plotkin’s Lifestyle: From Riches to Rags?
Gabe Plotkin was once one of the richest and most successful hedge fund managers in the world. He worked as a portfolio manager at SAC Capital, a firm run by billionaire Steve Cohen, before launching his own fund, Melvin Capital, in 2014. He named the fund after his late grandfather, who was a successful businessman.
Plotkin earned a staggering $846 million in 2020, making him one of the highest-paid hedge fund managers in the industry. He used his wealth to buy lavish properties, such as a $44 million mansion in Miami Beach, a $32 million penthouse in New York City, and a $10 million estate in Greenwich, Connecticut. He also invested in sports teams, such as the Charlotte Hornets and the Tampa Bay Rays.
However, Plotkin’s fortune took a massive hit in January 2021, when he lost billions of dollars due to his short positions on GameStop and other struggling companies. Plotkin bet that the stock prices of these companies would fall, but he was caught off guard by a surge in demand from retail investors, who were encouraged by a Reddit forum called WallStreetBets to buy the stocks and drive up their prices.
Plotkin had to close his positions at a huge loss, and his fund ended the month with a 53% decline in value. He also had to seek a $2.75 billion bailout from his former boss, Steve Cohen, and another billionaire, Ken Griffin.
Plotkin’s lifestyle has been affected by his financial woes, as well as by the public scrutiny and backlash he faced. He reportedly received threats and harassment from angry investors and internet trolls, who blamed him for manipulating the market and hurting small traders. He had to increase his security and hire a crisis management team to deal with the situation. He also had to testify before Congress, along with other key players in the GameStop saga, to explain his actions and defend his practices.
Plotkin’s Background: A Star Trader Turned Scapegoat
Gabe Plotkin started his career as a trader at SAC Capital, where he quickly rose to prominence as one of the best performers in the firm. He specialized in consumer stocks, such as retailers, restaurants, and entertainment companies, and developed a reputation for his aggressive and savvy trading style. He was also known for his work ethic and his attention to detail, as he often stayed up all night to monitor the market and analyze data.
Plotkin left SAC Capital in 2014, after the firm pleaded guilty to insider trading charges and paid a $1.8 billion fine. He launched Melvin Capital with the backing of Steve Cohen and other investors, and soon established himself as one of the top hedge fund managers in the industry. He delivered impressive returns for his clients, averaging 30% annually from 2014 to 2020. He also attracted top talent to his fund, hiring some of the best analysts and traders in the business.
Plotkin’s success, however, came at a price. He also made enemies along the way, as he often bet against companies that he believed were overvalued or doomed to fail. He was particularly bearish on GameStop, a video game retailer that was struggling to adapt to the digital age and the coronavirus pandemic. He amassed a large short position on the company, expecting its stock price to plummet.
However, he underestimated the power of the internet, and the passion of the gamers who supported GameStop. He became the target of a coordinated campaign by Reddit users, who bought GameStop shares and options en masse, creating a phenomenon known as a “short squeeze”. This forced Plotkin and other short sellers to buy back the shares at higher prices, resulting in huge losses.
Plotkin’s downfall was celebrated by many online, who saw him as a symbol of the greed and corruption of Wall Street. He was also criticized by some lawmakers and regulators, who questioned the ethics and legality of his trading strategies. Plotkin, however, maintained that he did nothing wrong, and that he was simply following the rules and the logic of the market. He also expressed respect for the retail investors who outsmarted him, saying that they were “just as important” as institutional investors.
Plotkin’s Current Status: A Comeback Story?
Gabe Plotkin may have suffered a major setback, but he is not giving up. He is determined to rebuild his fund and his reputation, and to prove his critics wrong. He has made some changes to his portfolio, reducing his exposure to short bets and increasing his investments in technology and health care stocks.
He has also received more support from his backers, who have expressed confidence in his abilities and his vision. Plotkin’s efforts seem to be paying off, as his fund has shown signs of recovery in recent months. According to Bloomberg, Melvin Capital gained 22% in February and 12% in March, recouping some of its losses from January.
Plotkin is also optimistic about the future of the hedge fund industry, despite the challenges and uncertainties posed by the pandemic, the regulation, and the competition. He believes that there are still opportunities for growth and innovation, and that he has the skills and the experience to capitalize on them. Plotkin’s story is not over yet.
He still has a long way to go to restore his fund to its former glory, and to regain the trust and respect of his peers and the public. He also faces potential lawsuits and investigations from his rivals and the authorities, who may seek to hold him accountable for his role in the GameStop saga. Plotkin, however, is not backing down. He is ready to face the challenges ahead, and to show the world that he is still one of the best in the game.