The bleeding never seems to stop at Melvin Capital Management LP. Gabe Plotkin’s beleaguered fund lost 21% in the first quarter of 2022, according to a report just out from Bloomberg.

Melvin famously lost billions in 2021 with disastrous bets against meme stocks like GameStop Corp. and AMC Entertainment Holdings Inc. It ended 2021 down 39%. Meanwhile, the S&P 500 gained 29%

Its losses this year may total over $1.5 billion, since it began 2021 with $12.5 billion.*

And if seas of red ink weren’t bad enough, Melvin has also been caught up in a federal investigation of illegal activity by short sellers.

Melvin’s backers seem to be finally losing their patience. Major hedge funds Citadel LLC and Point72 Asset Management LP have pulled out over $1 billion from Melvin after backing the firm during its near death experience in January 2021.

When you invest in a fund, you are hiring someone: a manager to grow your capital. So how is employee Plotkin doing?

Well, he lost a fortune, “changed strategy,” then lost another fortune. His firm could be under federal indictment any day.

In the words of a very controversial man:

More on markets:

Melvin Capital Under Federal Investigation

Melvin Capital Loses $1 Billion in 3 Weeks to Start 2022

Mass Firings at Citadel Right Before Federal Probe

*A 39% loss in 2021 would leave them with around $7.6 billion. A further loss of 21% this year would total about $1.6 billion. This may be conservative since Citadel and Point72 put more money into the fund in 2021, leaving Plotkin with more money to lose.

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