The owner of the hedge fund that made global headlines this week in relation to GameStop stock trading is the recent buyer of $44 million worth of Miami Beach property.
According to The Real Deal, Melvin Capital Management founder Gabe Plotkin closed the deal on two properties in the North Bay neighborhood in November, while the sale was recorded in December. He now reportedly has plans to expand the estate.
For $32 million, Plotkin picked up a 12,651-square-foot mansion at 6360 North Bay Road. The massive estate boasts nine bedrooms, 12 bathrooms and four half-bathrooms. It also includes an adjoining guest-house with plenty of room to entertain and host overnight guests. The pool overlooks 112 feet of water frontage with views of Miami Beach. Plotkin also bought its neighbor at 6342 Noth Bay Road. The 4-bedroom, 4-bathroom house was built in 1935 and sold for $12 million. Sitting on a 24,407-square-foot lot, the house was advertised as a tear-down.
Both waterfront properties were previously owned by luxury watch retailer Jean Simonian, and both sold for over $10 million more than what Simonian paid in 2019. North Bay Road is one of the luxury Miami Beach neighborhoods that's enjoyed a pricing soar in recent months. One waterfront property that previously belonged to Pablo Escobar sold for nearly $11 million in early January.
Plotkin found himself in the public eye this week due to the controversy over the rise of GameStop's stock price. After garnering support from Reddit's r/wallstreetbets subreddit, the video game retailer saw its stock rise about 8,000 percent in six months. GME, the stock abbreviation for GameStop, picked up once again on January 11 after announcing three additions to its board of directors. While some short-sellers abandoned their positions, Melvin Capital Management continued short-selling the video game retailer. As retail investors targeted the stock in buying this week, the stock continued to rise to an unprecedented $350 price point.
CNBC reports that Melvin Capital Management eventually closed out of its short-stock position on Tuesday afternoon after allegedly taking a huge loss. Melvin Capital manages $13 billion, with holdings including more than 405,000 shares of Amazon and about 20 million shares of Bath & Body Works owner L Brands.