Activist investor Bill Ackman has been beating the drums for
a sale of mall owner General Growth Properties in recent days, but it’s his
stake in JCPenney that’s really causing him grief, according to the NY Post
report. The popular hedge-fund manager confessed to investors that his 18
percent stake in Penney had lowered returns by about $900 million this year,
The Post has learned.
In the latest quarterly investor letter of his $10.5 billion
Pershing Square firm, he said Penney “has cost us more than nine percentage points
of gross return this year.” The hedge fund lost 6.4 percent in the quarter,
after the retailer’s shares slid from their high of $43 in February.
Through June 30, Ackman was up only 2.3 percent, according
to the letter. That means the acclaimed investor was trailing the Standard
& Poor’s 500, up 9.5 percent in the first half. Pershing has maintained its 18 percent stake
in Penney, which he began to amass in October 2010 at a reported cost of about
$900 million. The stake was worth just about that amount — $911 million — at
June 30, according to a filing. Penney is down 28 percent for the year..
Read more:
http://www.nypost.com/p/news/business/ackman_penney_markdown_yAEum8bPiLVIkwpEAImN1H#ixzz24wwOR6Ki
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