The top US securities regulator is probing Melvin Capital Management's risk controls and investor disclosures after the hedge fund was decimated in last year's meme-stock frenzy, according to a new report.The Securities and Exchange Commission is investigating what Melvin founder Gabe Plotkin told investors after the fund lost $6.8 billion by betting against GameStop shares during the frenzy, the Wall Street Journal reported on Thursday.Melvin had been one of Wall Street's most successful hedge funds prior to January 2021, when the fund suffered billions in losses in a battle of wills against an army of small investors on the forum WallStreetBets.
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