As we’ve mentioned, with one somewhat notable exception, Gabe Plotkin has nary put a foot wrong in his career as a hedge-fund manager—even taking into account his battering at the hands of the Redditor hordes early last year. Well, he sure has stepped in it now.
Given the nightmares his Melvin Capital Management suffered both last and now this year, Plotkin wanted a mulligan. A do-over. Sure, he was willing to make a few sacrifices in exchange for it: lower fees (for a little while, anyway), easier redemption terms, a promise to keep things a bit smaller. What do you say, dear clients?
Quite a bit, as it happens, but it all boils down to: Plotkin may want a mulligan, but his investors want their goddamned money back.
“I am sorry. I got this one wrong. I made a mistake. I apologize,” wrote the hedge-fund mogul…. “Some of you feel that we were not being a good partner. Upon reflection, you are right,” Plotkin wrote.
Investors were left scratching their heads after the initial note. But now they’re more confused than ever, sources told The Post. One investor griped that the email was “f***ing wacky.” This investor added he had “no clue what the email actually meant.”
“I just want my money back,” the investor fumed.
Well, don’t you worry, Mr. Unnamed Investor. Plotkin has heard you loud and almost clear, and he’s gonna cook something up you’ll love, promise. If you can’t forget about the half of your money Plotkin’s lost over the last year-plus, let’s at least all forget about this whole unpleasant resetting-of-the-high-water-mark thing.
“In hindsight and despite our intentions, we recognize now that we focused on future returns and team continuity without sufficient consideration of your investment losses….” Plotkin wrote in Sunday’s missive that even though there was “sufficient interest and critical mass” to move forward with the plan, he was set on finding a more “balanced” solution in the next two to three weeks.
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