Gabe Plotkin Net Worth: How Rich is the Businessman Actually?

Gabe Plotkin is an American businessman best known as the founder of the New York hedge fund, Melvin Capital Management. He is also co-chairman of the Charlotte Hornets. As of 204, Gabe Plotkin net worth is approximately around $400 million.

Early Life

Gabe Plotkin was born in 1979 in Portland, Maine. Not much is known about his parents. Regarding his education detail, he studied at Northwestern University and earned a bachelor’s degree in economics.

Gabe Plotkin Net Worth & Career

Gabe started working for Henry Crown and Company after graduating from university. Then, he joined North South Capital and began serving as a consumer stocks analyst. In 2006, he became associated with a hedge fund, S. A. C. Capital Advisors. While working at a hedge fund, he took the responsibility of managing one of its largest portfolios which was valued at more than $1 billion.

Plotkin founded a New York-based hedge fund, Melvin Capital Management in 2014. He named the company’s name after his wife’s boyfriend.  Plotkin was one of the high-earning hedge fund managers in 2017. During that time, he had $300 million in earnings, which increased to more than $850 million in 2020. As his earnings increased, he was placed in the top 15 high-earning hedge fund managers.

Gabe experienced a huge loss in 2021 due to GameStop’s short squeeze impact on the fund. After Bloomberg announced that the hedge fund, Melvin Capital Management doesn’t exist anymore amid GameStop’s short squeeze. It also came in the news that Gabe would be taking his steps back and closing down his company.

In 2022, Gabe founded a family office, Tallwoods Capital LLC intending to make long-term investments. He took the responsibility as the Chief Investment Officer of the firm. Plotkin is currently serving as the co-chairman of the professional basketball team, Charlotte Hornets. He initially bought a minority stake in the Hornets in 2019.

In June 2023, Gabe and the businessman, Rick Schnall bought Hornets from the former minor owner, Michael Jordan. In 2023, Plotkin was featured in the biographical movie, Dumb Money. He is the central part of the movie’s story. The movie centers around his apparent defeat in the market. Dumb Money’s ending shows that he was forced to close down the hedge fund, Melvin Capital following the catastrophic losses the company suffered due to the GameStop saga.

Dumb Money mainly follows the true story of a 2021 incident, the GameStop short squeeze, which caused major losses for several investment funds on Wall Street. The story of the movie centers around GameStop, the video game retailer. Plotkin and his company play a heavy gamble on GameStop’s weak and outdated business model. Plotkin eventually takes a substantial short position on GameStop’s stock. In the end, Melvin suffered a disastrous loss, and Plotkin became the most notable loser of the 2021 GameStop short squeeze.

According to reports, Melvin suffered a big loss of about $7 billion during the GameStop short squeeze. The hedge fund reportedly had a negative return of 39% in 2021. After suffering heavy loss, Melvin was bailed out by Steve Cohen’s Point 72, and Ken Grifin’s Citadel. Unfortunately, their help could not prevent Melvin from shutting down its operations. Plotkin and Melvin have been betting against GameStop since 2014, earning a positive return of up to 30% on their bet throughout 2020.

Personal Life

Gabe Plotkin is married to Yaara Bank-Plotkin, a New York native. Together, the pair shares four kids. Gabe and his wife have been involved in several philanthropic causes. The couple also runs the charitable organization, the Gabriel and Yaara Plotkin Family Foundation.

Through the charity organization, they have supported several organizations such as the Chabad of Southampton, and the Wounded Warrior Project. In addition to that, Gabe serves on the board of advisors at the Children of Fallen Patriots Foundation. The organization mentors and provides scholarships to individuals whose parents died in the line of duty.

Gabe Plotkin Net Worth

As of 2024, Gabe Plotkin’s total net worth is estimated to be around $400 million. Plotkin reportedly lost $1 billion in a single day due to GameStop’s short squeeze in 2021. In the trailer of the movie, Dumb Money, when Gabe’s wife asks him how much he lost in a single day, he gloomily replies that he suffered a loss of $1 billion in a day, and after that, he lost another $1 billion. In December 2020, Plotkin purchased two waterfront homes for $44 million.