The hedge fund that lost 53% in January betting against GameStop bought $1.3 billion of Facebook stock in the 4th quarter

<p><img src="https://static4.businessinsider.com/image/602d362e0bbc6c001824bc4c-2000/Gabe Plotkin:Alex Flynn:Bloomberg.jpg" border="0" alt="Gabe Plotkin" data-mce-source="Alex Flynn/Getty Images/Bloomberg" data-mce-caption="Melvin Capital founder Gabe Plotkin"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Melvin Capital Management, the hedge fund at the heart of the GameStop saga that captivated observers in January, bought 4.66 million Facebook Class A shares valued at $1.27 billion in the fourth quarter of 2020, according to a <a href="https://www.sec.gov/Archives/edgar/data/1628110/000090571821000248/xslForm13F_X01/infotable.xml">Form 13F </a>filed with the Securities and Exchange Commission this week.</p><p>Founded by star portfolio manager Gabe Plotkin, Melvin Capital started 2021 with<a href="https://www.businessinsider.com/melvin-capital-lost-53-percent-january-after-gamestop-shares-skyrocketed-2021-1"> $12.5 billion in assets</a>, and, by the end of January, ended with more than $8 billion in assets.</p><p>The fund got burned, along with other high-profile hedge funds, as an army of Reddit day traders sparred with Wall Street investors to push shares of the video-game retailer to intraday highs over $450. Melvin Capital <a href="https://www.wsj.com/articles/melvin-capital-lost-53-in-january-hurt-by-gamestop-and-other-bets-11612103117">closed its short position in GameStop</a> on January 27.&nbsp;</p><p>Assuming Melvin Capital still owns its full Facebook stake, the firm will need much stronger performance to offset the GameStop loss. The stock is up just 0.3% year-to-date.</p><p>In 2020, <a href="https://markets.businessinsider.com/news/stocks/melvin-capital-gabe-plotkin-took-home-846-million-in-2020-2021-2-1030067950">Plotkin took home $846 million</a>, netting him a spot among the top hedge fund earners last year, <a href="https://www.bloomberg.com/news/articles/2021-02-10/chase-coleman-leads-23-billion-payday-for-15-hedge-fund-earners">according to Bloomberg</a>.&nbsp;15 hedge fund managers took home an estimated $23 billion in 2020, with Tiger Global Management founder Chase Colman taking the top spot, with $3 billion, <a href="https://www.bloomberg.com/billionaires/">according to Bloomberg.</a></p><p>GameStop has since fallen from its January closing high of $380 after starting the year at $19. On Tuesday, shares of the company closed at $49.51.</p><p><a href="https://markets.businessinsider.com/news/stocks/melvin-capital-gamestop-bought-facebook-stock-4q-gabe-plotkin-2021-2-1030093182#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/electric-planes-future-of-aviation-problems-regulations-2020-3">Why electric planes haven't taken off yet</a></p>
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