Sun, Jan 22, 2017
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 - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised