Gabe Plotkin Plots ETF: Turning Meme-Stock Pain Into Snowball Gains?
Benzinga
Last updated: May 1, 2026
Gabe Plotkin, former CEO of Melvin Capital Management and co-owner of the Charlotte Hornets, is planning a return to the investment world. He aims to launch a new Exchange Traded Fund (ETF) called Snowball ETF. This initiative involves a strategy leveraging a tax-efficient "351 conversion."
- Plotkin's new venture, Snowball ETF, intends to utilize a 351 conversion structure. This mechanism allows for the transfer of assets into a newly formed corporation without triggering immediate tax liability. This approach is designed to be tax-efficient for investors.
- The move signifies Plotkin's re-entry into the financial markets following his previous role at Melvin Capital, a firm that experienced significant volatility, notably during the GameStop short squeeze event. The Charlotte Hornets ownership stake remains with Plotkin.
- While specific investment strategies for Snowball ETF are not detailed, the chosen tax structure suggests a focus on long-term capital gains and potentially a mechanism to manage taxable events upon asset transfer. This comeback aims to re-establish Plotkin's presence in the investment management landscape.
