Sat, May 30, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Bill Ackman gives up on JC Penney

Tuesday, August 27, 2013

amb
Bill Ackman
Precy Dumlao, Opalesque Asia:

Beleaguered activist hedge fund manager William Ackman sold his entire holdings in U.S. retailer J.C. Penney Co Inc., after his effort to overhaul its management failed, Reuters reported.

Ackman's $11bn Pershing Square Capital Management, the largest shareholder in J.C. Penney, sold to 39.1 million shares, equivalent to 18% the firm to Citigroup Inc., which is now offering the shares to prospective investors.

The sale also ended Ackmanís three year campaign to bring the retailer back to profitability by hiring a new chief executive, upgrading its merchandize and simplifying pricing to make the stores more attractive to customers.

But the reorganization did not translate into earnings as store sales plunged 25% in the last fiscal year and J.C. Penneyís share prices fell 32% since January this year. In April, Ackman acknowledged the shortcomings of the chief executive officer he had chosen to turn around the retailer, Ron Johnson. Ackman lost hundreds of millions of dollars in this bet when he bought the shares at $20.01. J.C. Penneyís shares closed at $13 after he announced his sales. J.C. Penney last week said it was instituting a new plan to block takeover bids f......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: New TMT hedge fund adopts the long-term approach[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Adam Parker founded Center Lake Capital LLC in New York in November 2014. Before that, he was portfolio manager at Point State Capital (the successor fund to Dr

  2. Regulatory - Hedge funds face tax as Iceland poised to end capital controls, Comment: Why alternatives need more transparency, not enforcement[more]

    Hedge funds face tax as Iceland poised to end capital controls From Bloomberg.com: Hedge funds and other investors who bought claims against Icelandís failed banks face a tax that targets the lendersí estates as the government prepares to unveil its plan for exiting capital controls in t

  3. Investing - Nelson Peltzís Trian Fund Management reduces position in Legg Mason, Biotech investors up big amid bubble talk, Hedge funds increase exposure in healthcare[more]

    Nelson Peltzís Trian Fund Management reduces position in Legg Mason From Octafinance.com: Trian Fund Management has filled a SC 13D/A form regarding Legg Mason, Inc. Per Nelson Peltzís Trian Fund Managementís filing, the filler reported decreased stake in the company by -11.05% to 11,03

  4. All hedge fund strategies rebounded last week as market conditions normalize[more]

    Komfie Manalo, Opalesque Asia: After a difficult start this month, all hedge fund strategies ended last week in positive territory, as the Lyxor Hedge Fund Index gained 0.9% (-0.2% MTD, 3.3% YTD). According to Lyxor AMís latest Weekly Briefing, in t

  5. Billionaire hedge fund investor Odey says April 'bloody', has cut risk[more]

    From Reuters/Yahoo.com: Billionaire hedge fund manager Crispin Odey has cut risk and leverage following a stunning 19.3 percent loss in his 3.1 billion euros (2 billion pounds) Odey European Inc fund in April, a letter to investors seen by Reuters showed. Describing the month as "bloody", Odey

 

banner