Sat, Dec 20, 2014
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 Ackman’s 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. Penney’s 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. Penney’s 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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und