HLT - 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.

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Hyatt, Coty, caught in Melvin Capital liquidation