Hedge fund manager hit in GameStop frenzy is developing $44M Miami mega-mansion
Short-seller Gabe Plotkin’s Melvin Capital Management lost 53% in January
The hedge fund manager hit hardest by the GameStop trading frenzy is in the middle of a major redevelopment of a $44 million mega-mansion in Miami — despite his company losing $4.5 billion in the mania, according to a report.
Short-seller Gabe Plotkin’s Melvin Capital Management lost 53 percent in January — ending the month with $8 billion in assets, down from roughly $12.5 billion — largely because of online trading propelled by the Reddit forum r/WallStreetBets.
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His firm got a $2.75 billion bailout from hedge fund giants Ken Griffin and Steve Cohen, his former boss, amid speculation the crash could bankrupt his company.
Gabe Plotkin, chief investment officer and portfolio manager of Melvin Capital Management LP, speaks during the Sohn Investment Conference in New York, on May 6, 2019. (Alex Flynn/Bloomberg via Getty Images)
But as the drama unfolded, Plotkin was already planning a huge renovation to combine two adjacent Miami Beach properties he bought in the celeb hotspot in November for $44 million, according to The Real Deal.
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He plans to keep one of the homes, while knocking down the waterfront house next door to replace it with amenity courts, a new 1,316-square-foot cabana, a children’s playground and open space, the outlet said.
Plotkin — who is worth $300 million, according to Forbes — has already applied for permits and his attorney is expected to go before the Miami Beach Design Review Board next week, The Real Deal said.
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His new neighbors include billionaire hedge fund manager Dan Loeb, as well as Cindy Crawford and Rande Gerber and Karlie Kloss and Josh Kushner, the outlet noted.