“The appropriate next step is to wind down the Funds by fully liquidating the Funds' assets and accounts and returning cash to all investors,” Plotkin wrote in a letter reviewed by Reuters on Wednesday.
Melvin Capital had $7.8 billion in assets at the end of April. The fund lost 23% in the first four months of 2022, a person familiar with the fund's finances said.
This year's losses come on the heels of steep losses in 2021 when Melvin Capital ended the year down 39%. The firm bet that shares of GameStop would tumble but was battered when retail investors took the other side and sent the stock surging.
The firm had $12.5 billion in assets at the start of 2021.
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