Saturday, 30 July 2016
Last updated 4 hours ago
Aug 18 2014 | 1:10pm ET
SAC Capital Advisors veteran Gabriel Plotkin has eschewed the traditional sources for hedge fund names, choosing instead to name his new firm to honor his grandfather.
Plotkin, a top money manager at Point72 Asset Management, formerly known as SAC, has dubbed his planned hedge fund Melvin Capital. The name is Plotkin’s late grandfather’s, according to The New York Times.
Melvin Plotkin was a small-business owner, according to the Times. His grandson hopes that his namesake hedge fund will be anything but small, with a $1 billion fundraising target. Point72 founder Steven Cohen has pledged $200 million to the venture, which will begin trading by next year.
Plotkin, who once managed about $1.3 billion for SAC, remains at the firm, which changed its name and became a family office after pleading guilty to insider-trading charges earlier this year. But he has liquidated his portfolio and is focused exclusively on setting up Melvin Capital, working with Morgan Stanley and Goldman Sachs on his fundraising efforts.
Plotkin is also hiring for his new firm, naming David Kurd its chief operating officer. Plotkin and Kurd worked together at North Sound Capital before Plotkin joined SAC in 2006, and Kurd is expected to bring his team with him to Melvin.