Melvin Probed by SEC Over Risk Controls, Client Communications

Melvin Capital Management, the hedge fund that Gabe Plotkin closed earlier this year, is being investigated by the US Securities and Exchange Commission over whether the firm misled investors about its risk controls and intentions to recoup losses on its wrong-way bets on meme stocks, according to people familiar with the probe.

The SEC requested that Melvin hand over its written communications to investors, the people said, asking not to be identified discussing information that isn’t public. The regulator has received those communications in recent months, they said. The investigation is in early stages and it may not end ...