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On April 4, the Yangtze River Delta Railway ushered in the peak of passenger flow during the Qingming Festival. It is expected to send 4.1 million passengers today, 365,000 more than the same period last year, an increase of about 9.8%, and is expected to set a new record for single-day passenger volume. This years Qingming Festival railway transportation will start from April 3 to 7. The Yangtze River Delta Railway is expected to send 17.6 million passengers in 5 days, with an average daily passenger flow of 3.52 million, a year-on-year increase of 6.8%.The yield on the two-year U.S. Treasury note fell to a six-month low of 3.6550% and was last at 3.6611%.On April 4, local time on April 3, U.S. Secretary of Health and Human Services Robert Kennedy Jr. said that about 20% of the layoffs in the Department of Government Efficiency were wrong and needed to be corrected. The U.S. Department of Health and Human Services laid off about 10,000 people on the 1st. Kennedy said that people who should not have been laid off were laid off, and the department is restoring their positions. Kennedy said that canceling the entire lead poisoning prevention and monitoring department of the Centers for Disease Control and Prevention was one of the mistakes. At present, it is unclear what other projects Kennedy may plan to restore.Bank of Japan Governor Kazuo Ueda: Will consider the impact of food costs on consumers.On April 4, local time on the 3rd, the automobile company Stellantis said that due to the impact of the US import automobile tariff policy, the company decided to lay off 900 employees in its five US factories and suspend production operations at two assembly plants in Canada and Mexico. Antonio Filosa, Chief Operating Officer of Stellantis Americas, said that the US factories that were laid off were powertrain and stamping parts factories, which produced spare parts for two assembly plants in Canada and Mexico. According to the plan, the assembly plant in Canada will stop production for two weeks, and the assembly plant in Toluca, Mexico will suspend production throughout April. Filosa said the company is "continuing to evaluate the medium- and long-term impact of tariffs on operations."

Melvin Capital Will Close Following Huge Losses on Meme Stocks And A Market Decline

Charlie Brooks

May 19, 2022 10:01

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Melvin Capital, formerly one of Wall Street's most successful hedge funds that lost billions in the meme stock saga, will cease operations following this year's market decline.


After years of double-digit profits, Gabe Plotkin, widely considered as one of the industry's greatest traders, told investors that the past 17 months have been "very difficult."


Plotkin was attempting to turn around the company after being discovered betting against retail favorite GameStop (NYSE:GME) in early 2021 and being blindsided by falling markets this year.


"The proper next step is to wind down the Funds by fully selling the Funds' assets and accounts and delivering cash to all investors," Plotkin said in a letter that Reuters obtained on Wednesday.


At the end of April, Melvin Capital held assets of $7.8 billion. In the first four months of 2022, the fund had a 23 percent loss, according to a source acquainted with the firm's accounts.


The losses this year follow significant losses in 2021, when Melvin Capital finished the year down 39 percent. The firm wagered that GameStop's stock would decline, but lost when ordinary investors took the opposite position and drove the stock soaring.


The company's assets were $12.5 billion at the start of 2021.


Plotkin stated in his letter that he had already obtained a large amount of cash and reduced the funds' exposure.


Plotkin's representative declined to respond.


Powerful investors, including Citadel LLC and Point72 Asset Management, where Plotkin had worked, continued to back Melvin for a time, investing billions in emergency funds in early 2021 amid the massive stock losses.


Plotkin informed investors earlier this year that he intended to reorganize and reduce assets from around $8.7 billion to $5 billion, while temporarily reducing fees. Investors responded vehemently to the ideas, and Plotkin was subsequently obliged to apologize and admit he had made an error.


Plotkin announced on Wednesday that he had begun selling the portfolio and will cease charging management fees beginning June 1. He also stated that he "gave everything" he had, but that it was insufficient to "bring the expected returns."


Melvin's largest investments at the end of the first quarter included Live Nation Entertainment (NYSE:LYV), Hilton Worldwide Holdings (NYSE:HLT), Amazon (NASDAQ:AMZN), and Datadog (NASDAQ:DDOG). In recent weeks, their stock prices have fallen substantially, sparking rumors that a hedge fund may be attempting to unwind bets.


Plotkin was a top investor at Steven A. Cohen's hedge fund, formerly known as SAC Capital Advisors, but he resigned in 2014 to start his own company after SAC pled guilty to criminal insider trading allegations. Melvin Capital gained 52.5% by the end of 2020, the year the epidemic began, after attracting the attention of influential investors and achieving rapid growth.


Melvin enjoyed average annualized gains of 30% from 2014 to 2020. Since its inception, the fund has returned an annual average of 11.9%.

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