Melvin Investors Fume After Plotkin Opts to Shutter His Fund
- Clients say they were confident Plotkin could recoup losses
- Others felt that he gave up on trying to make their money back
This article is for subscribers only.
Melvin Capital Management’s traders pocketed hefty performance fees over a half-decade while achieving roughly 30% in annualized gains. Now, after a streak of steep losses, they’re abruptly returning client cash and moving on.
Some of Melvin’s investors caught flat-footed this week by Gabe Plotkin’s decision to shut his hedge fund are grousing privately about fair-weather money management. They were hopeful his team could recoup at least some of the money it started losing in a short-squeeze more than a year ago and try to make them whole.