Gabe Plotkin will buy the Charlotte Hornets from Michael Jordan. According to estimates, Plotkin has more than $400 million net worth. A consortium under Plotkin is negotiating with Jordan to buy the majority interest. He teams with Rick Schnall and others to make the winning $3 billion offer.
After 13 years as the team’s owner, Michael Jordan is giving up most of his ownership. After the transaction, Jordan will continue to be associated with the Charlotte Hornets and own a slight interest in the franchise. Jordan was the only majority-black owner in the league. In 2010, he invested the majority interest for $275 million.
Gabe Plotkin’s Net Worth?
American hedge fund manager Gabriel “Gabe” Plotkin has a $400 million fortune. The most well-known incident involving Gabe was the founding of Melvin Capital Management, which engaged in a public argument with a group of Reddit users in 2021 over the firm GameStop. He is also well-known for being the principal investor.
Here one of the twitter user also tweeted about his net worth:
Gabe Plotkin , minority owner of the Charlotte Hornets has a
Net worth of 400 million.
Jordan might sell to him.— Jim Celania (@JimCelania) March 17, 2023
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In June 2023, they paid $3 billion to buy away Michael Jordan’s controlling ownership of the Charlotte Hornets. He earned an Economics degree from Northwestern University in 2001. He started working for the hedge fund Citadel LLC right out of college. Additionally, he worked for SAC Capital and North Sound Capital, two Connecticut-based hedge funds.
Gabe Plotkin’s Capital SAC
He oversaw a $1.3 billion consumer stocks fund at SAC Capital. Federal authorities claim that Gabriel received inside knowledge while working for SAC Capital. Plotkin, listed as “Portfolio Manager B” in court documents, allegedly received several emails from another portfolio manager that the SEC deemed to have inside information.
SAC entered a guilty plea in 2013 and consented to pay $616 million to the SEC and $1.2 billion in fines. Steven A. Cohen, the company’s creator, then decided to return all outside funding and start Point72 Asset Management, a family office. In 2016, SAC was utterly shut down.
Gabe Plotkin’s Melvin Capital
In the wake of SAC’s collapse, Gabe Plotkin established Melvin Capital Management in 2014. The business, which bears Gabe’s grandfather’s name, swiftly raised $1 billion in funding. Melvin produced a 47% return on assets in 2017, its first full year of operation, making it the second-best-performing hedge fund globally.
(among hedge funds with more least $1 billion in assets under management). After the success of that year, he received $300 million in compensation. The fund’s assets under management soared to $3.5 billion in 2018. The company will have $12.5 billion under control by 2020.
Gabe Plotkin’s GameStop
A surge of protest against fund managers like Plotkin, who aggressively “shorted” the stock of struggling companies, developed in early 2021 among users of the Reddit community r/wallstreetbets. Reddit users paid close attention to GameStop’s short sales, which were the most popular on American stock exchanges. GameStop rents out video games.
Reddit users came together to carry out a “short squeeze,” in which the stock price rocketed, resulting in the short sellers losing enormous sums of money quickly. According to reports, Melvin Capital soon lost 30% of the value of its fund due to its sizable temporary position in GameStop.
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The losses were so significant that Melvin reportedly had to ask Point72 and Citadel for a $2.75 billion capital infusion in exchange for the right to a percentage of the fund’s future earnings. On its investments, Melvin Capital lost 53% in just January 2021. Melvin had assets worth $12.5 billion when the year began and $8 billion by the end of January, which includes the $2.75 billion in capital infused.
Hornets/Michael Jordan Investment
Michael Jordan partly owned the Charlotte Hornets of the NBA until Gabe and another hedge fund manager acquired that ownership in 2019. The Hornets were worth $1.5 billion after the acquisition.
Real estate and personal matters
Gabe purchased two adjacent properties on North Bay Road in Miami, Florida, for $44 million in November 2020. He submitted plans for demolishing one of the properties and replacing it with a tennis court and gardens to the city. He has assets in New York City as well.
