H

Hyatt Hotels Corporation

76.31
USD
7.16%
76.31
USD
7.16%
67.70 108.10
52 weeks
52 weeks

Mkt Cap 3.82B

Shares Out 50.07M

Chat
Send me real-time posts from this site at my email

Hyatt, Coty, caught in Melvin Capital liquidation

The liquidation of Melvin Capital has caught a number of consumer-facing companies in its crosshairs. After a well-publicized battle with “apes” during the Gamestop short squeeze, Melvin Capital CEO Gabe Plotkin announced his decision to throw in the towel on comeback plans late last week. Shortly after sending a letter declaring the firm’s decision to shut down, CNBC's David Faber reported that the hedge fund’s public positions have already been liquidated. In hindsight, the shut-down of the fund over the first few months of the year may have led to outsized declines for a number of retail, hospitality, and restaurant stocks. For example, Melvin Capital was the largest shareholder in Coty Inc. (NYSE:COTY) prior to recent sales. Even after significant sales that cut the position by 30% in the first quarter, the hedge fund still touted the second largest stake in the company to the tune of 29.4 million shares. If these shares have indeed already been sold as David Faber’s reporting suggests, the steep declines for the stock as of late appear to have been at least in part motivated by this significant selling pressure from a single source. The same dynamic impacted Hyatt Hotels Corporation (NYSE:H) which counted Melvin as its third largest shareholder at the close of the first quarter despite the hedge fund cutting its stake in half. As of March 31, the asset manager held a 5.22% stake in the hotel chain which it has presumably liquidated since. A similar, albeit smaller, trend appears to have impacted Texas Roadhouse (NASDAQ:TXRH) which Plotkin’s firm held an over 5% stake in since 2020. During the first quarter, the firm sold over 3 million shares to reduce its position by over 60%. Despite that stark drop in ownership, Melvin Capital retained an over 2.5% stake in the restaurant chain. As such, the firm is purported to have sold almost 1.8 million shares since the start of April. Since Plotkin first hinted at unwinding the fund in late April, shares of each have fallen precipitously. Other major holdings to unwind in Melvin’s 13-F included a 1.64% stake in Bath & Body Works (BBWI), a 1.5% stake in Capri Holdings (NYSE:CPRI), as well as just over 1% stakes in Dominos Pizza (DPZ), Expedia (EXPE), and Hilton Hotels (HLT).

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue