Seeking Alpha

Report: Ackman selling entire J.C. Penney stake

  • Bill Ackman is selling his entire J.C. Penney (JCP) stake, reports Reuters. That's 39M shares or nearly 18% of the company.
  • Update at 4:29: Ackman's Pershing Square has exited its entire 39M share stake in J.C. Penney, according to an SEC filing. The price received by Pershing is not yet known.
  • Shares -5.2% AH.
Comments (24)
  • Ouch hope JCP recovers
    26 Aug 2013, 04:08 PM Reply Like
  • Whoa. So how much is he down?

     

    EDIT: NM, I was thinking about HLF.
    26 Aug 2013, 04:11 PM Reply Like
  • I wonder how many millions he lost... must be quite the sum.
    26 Aug 2013, 04:15 PM Reply Like
  • Think he bought it around $25 and he's long around 39.08 million shares - so roughly around $470 million in red ink. People smell blood on HLF which is why the stock remains high even with the recent news about the distributor blowing his brains out in his car.
    26 Aug 2013, 05:31 PM Reply Like
  • Not just how much HE lost, but how much OPM (other people's money) he lost as well ;-)
    27 Aug 2013, 05:25 AM Reply Like
  • I wish I was a Hedge Fund manager so I could be wrong so often and it not really matter.
    26 Aug 2013, 04:17 PM Reply Like
  • In reality Ackman is not "wrong so often", and it does matter. You probably know that Hedge Fund managers have their own money into their fund(s), so if the fund doesn't do well, the manager suffers, a lot. It is, easily, the most honest and direct correlation between manager and fund owners' sucess or failure there is.

     

    Ackman has been deadly wrong, this time around, no doubt, with JCP and HLF (I profited from taking the opposite position on it), but he would not have made it to where he is is he weren't very good.
    26 Aug 2013, 05:27 PM Reply Like
  • Its very obvious Ackman needed an excuse to get out of JCP.
    It surprised me that he sold a huge chunk in PG when he was touting it so much. Then I found out he bought some call options.
    Clearly he wants to build up some cash.
    26 Aug 2013, 05:40 PM Reply Like
  • "I wish I was a Hedge Fund manager so I could be wrong so often and it not really matter."

     

    After fees, Pershing Square's flagship fund is up more than 460% since 2004, with the major indices (S&P, NASDAQ, DJIA) al up around 80% over the same period; if you were right nearly as often as Ackman is, you could be a manager if you wanted, because people would give you plenty of capital.

     

    The difference is he has a published track record of outperformance and you don't...
    26 Aug 2013, 06:56 PM Reply Like
  • Hedge funds have always been terrible way to invest - very high expenses, and under-preform index funds in medium-long term. I am sure you can even beat hedge funds easily by just buying coke and Walmart shares...
    27 Aug 2013, 05:27 AM Reply Like
  • Like all investors they want a quick buck. Ackman wasn't willing to wait, and he was bitter because his choice for CEO failed. Ullman now needs to fix the mess RJ created. For some reason he though wacky fashion appealed to everyone, but he alienated 90% of the consumer base. JCPenney survived all these years because the offered quality clothing at a fair price. I have yet to see anyone in my area wear anything from Joe Fresh. Pastels are a springtime color for women...were getting near the end of summer. Ullman is doing a great job focusing on the JCPenney brands that have a better profit margin.
    27 Aug 2013, 10:15 AM Reply Like
  • Did he sell already? I didn't see an 18% drop in share price...He could have bought some shorts, announced that he was going to sell and thought he would profit on the down side. It doesn't look like the longs are taking to bait...
    27 Aug 2013, 10:18 AM Reply Like
  • Is there any link to the source / Reuters article? Not showing up on website under ticker JCP...
    26 Aug 2013, 04:20 PM Reply Like
  • http://bit.ly/16LXjVL

     

    Here is the article I saw,
    26 Aug 2013, 04:28 PM Reply Like
  • He should leave Herbalife too. He screwed up badly on these too. He still has plenty of winners and no one is perfect but he, Einhorn and Chanos have had some large mistakes on the short side lately. Whitney Tilson too.
    26 Aug 2013, 04:32 PM Reply Like
  • Instead of hiring Ron Johnson as CEO, JCP should have hired Don Johnson (of Miami Vice) to be the company mascot, with a new line of retro Miami Vice clothing.

     

    Most of the existing JCP customers would have appreciated the pastel colors and casual fit of the clothing style, and there's probably a stadium-sized warehouse somewhere that's full of dirt-cheap overstock from the 1980s that still hasn't been sold.
    26 Aug 2013, 04:41 PM Reply Like
  • Its not a warehouse, its actually a jcp competitor. Its called goodwill!
    26 Aug 2013, 07:52 PM Reply Like
  • Still better than Joe Fresh...
    26 Aug 2013, 11:18 PM Reply Like
  • Or Ron Jeremy. He's from the 80's, too.
    27 Aug 2013, 05:50 AM Reply Like
  • Timing is everything. Maybe Mr. Ackman could wait a couple years and buy the whole company at 13 cents a share and try again.
    26 Aug 2013, 05:06 PM Reply Like
  • I'm thinking he's planning on banking on investor panic. This is how the rich get richer.
    26 Aug 2013, 11:21 PM Reply Like
  • There is a lesson here for "value investors". I mean - stocks are better investments when they get cheaper - right? Buy when "Mr.Market" is offering you a bargain right?
    Sure.
    But your position size matters - and your ability to withstand 50% drawdowns without flinching. Not easy.
    26 Aug 2013, 05:13 PM Reply Like
  • He still can only sell certain amounts in company (think it was 5 million shares) per offering (the shares can not be put onto open market they have to go thru the BOD/Company and have them put into a public offering. He can do 2 offerings per year until he is BELOW 5% then he can dump them onto the public. That by my simple math is not until after Nov 2015. The Offerings can not start until Nov 22 this year. There are already a bunch of big HF owners jumping in to buy the shares down low now so he may end up holding till prices recover some. He has 25 something/share costs now so when will he have all gone??? appears to be at min 18 months away unless there is someone that will buy out his entire book with BOD approval.
    26 Aug 2013, 05:58 PM Reply Like
  • I think that investors are getting tired of him wining, as soon as he sells I'm buying in.
    26 Aug 2013, 11:16 PM Reply Like
DJIA (DIA) S&P 500 (SPY)