Posted on 04/21/2022 5:19:07 AM PDT by wastedyears
Melvin Capital, the embattled hedge fund run by its once high-flying founder Gabe Plotkin, has been discussing a novel plan with its investors under which the firm would return their capital, while giving them the right to reinvest that capital in what would essentially be a new fund run by Plotkin.
(Excerpt) Read more at cnbc.com ...
Since this is a family-friendly site, hedgies r doom’d.
🚀🚀🚀🚀🚀🚀🚀🚀
aren’t they down, with about a third loss this quarter?
just like last year?
and that is in several tens of billions of $$$$.
so ... why would anyone invest in him/them/it?
When something isn’t working, do more of it and harder…
Not my area -- but isn't that basically a cash-out with a huge tax liability?
Return of capital is typically non-taxable.
There’s no tax liability if you lost money.
He can call the new fund “Wedgie” instead of Melvin.
Gee surprised a fund dealing in shorting stocks has only lost 21% this year! What is that saying about doing the same thing over and over and expecting a different result.
Trying to short a stock when the float is dwindling is a stupid thing to do. Retail is buying everything they can then locking it up in Computershare.
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