Gabe Plotkin scrapped a plan to start charging performance fees again with his beleagured hedge fund, Melvin Capital Management, after encountering setbacks from investors.
Mr. Plotkin told clients on Thursday that he planned to shrink the size of Melvin’s hedge fund by several billion to $ 5 billion and resume charging performance fees, even though his investors are still sitting with large losses. Those who had been invested in early 2021 have lost 51.8% by March, after a big hit Melvin suffered in January last year due to the meme-stock rally.