Embattled hedge fund Melvin Capital reported another down month — just weeks after founder Gabe Plotkin said he planned to return investors’ money before opening a new fund.
Melvin — still struggling to recover after a massive short squeeze on meme stock GameStop crushed his fund in January 2021 — lost another 3.3% in April, taking the fund’s year to date drop to 23.3%, according to a letter to investors reviewed by The Post.
The most recent report comes less than two weeks after Plotkin suggested he would return investors their capital at the end of June and then allow them to reinvest in the beginning of July.
At the time, Plotkin — who famously got slammed by “meme stock” investors on Reddit last year who had targeted his fund for being a prominent short seller — said he wouldn’t try and make investors whole.
Instead, he’d demand performance fees of potential clients, including those who previously lost money with him. According to reports, Plotkin said he would keep the new fund small — under $5 billion and focus on shorting stocks.
“Melvin’s CEO who made $800 million in 2020 lost me even more money in April and wants to make himself more fees?” one investor fumed. “Shameful, disgusting, horrible behavior.”
As first reported by The Post, Plotkin told investors in a dramatic about face that he would delay his decision to shut down the fund.
Melvin was down 21% in the first quarter, but investors told The Post they were hopeful Plotkin — who was once a protégé of hedge fund titan Steve Cohen — would turn it around. The email to investors that Plotkin’s most recent bets pushed the hedge fund even deeper into the whole was met with anger.
“These people suck,” the investor said, slamming Melvin.
Plotkin said after speaking with investors he realized his suggestion to shut down Melvin was “tone deaf.”
“I am sorry. I got this one wrong. I made a mistake. I apologize,” wrote the hedge-fund mogul.
But his lifestyle appears to be unaffected by his recent losses — he is still holding onto the beachfront home he bought in 2020.
“Plotkin should sell his $44 million Miami Beach home after losing all of us so much money… rather than charging us more fees,” the investor fumed.
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