CNBC Pro

Melvin Capital adapting strategy after GameStop mania as hedge funds rethink short-selling methods

Share
VIDEO2:5902:59
Melvin Capital's Plotkin at GameStop hearing: Reddit traders exploited opportunity around short interest

Melvin Capital is rethinking its short-selling approach after it was caught up in the Reddit-fueled GameStop trading frenzy, according to the hedge fund's manager.

In a congressional hearing Thursday, Melvin's Gabe Plotkin said the power of social media was on full display as retail traders to piled into shares of GameStop, and it's something all hedge funds will have to contend with going forward.

More In Pro Insight

VIDEO03:46
CNBC ProGeneral Motors, General Electric and Rocket Companies— Halftime traders weigh on buys and sells
CNBC ProBitcoin just formed a 'golden cross' chart pattern, which has heralded big gains in the past
CNBC ProThe weak seasonal trading period that's got Cramer and other investors worried starts Friday