Gabe Plotkin scrapped a plan to start charging performance fees again at his beleaguered hedge fund, Melvin Capital Management, after encountering a backlash from investors.

Plotkin on 21 April told clients he planned to shrink the size of Melvin’s hedge fund by several billion, to $5bn, and resume charging performance fees even though his investors are still sitting on steep losses. Those who had been invested at the start of 2021 have lost 51.8% through March, after a big hit Melvin suffered in January of last year due to the meme-stock rally.