After Herbalife Ltd. (NYSE:HLF), the other company that every hedge fund took an oath to buy eventually was J.C. Penney Company, Inc. (NYSE:JCP). Kyle Bass filed 13G today, and Glenview Capital has also followed suit. Larry Robbins’ funds have bought another huge chunk of the stock, adding to their existing position.
Glenview holds more of JCP than Soros Fund
Larry Robbins’ Glenview Capital has increased its position in J.C. Penney Company, Inc. (NYSE:JCP) to 9.1% of the company’s outstanding shares. According to a 13G filed minutes ago, the hedge fund now owns 20,060,830 shares of JCP, up from 8,431,879 shares that it held until the end of Q2. The recent activity from Glenview has caused its ownership in JCP to eclipse Soros Fund Management’s direct holding, which is 19,986,361 shares of the company as of June 30. However Soros Fund also holds 500,000 call options on JCP, so its total position is still largest.
Glenview has been a silent shareholder of JCP, giving very few public views on the high profile boardroom brawl that played out in recent weeks. Larry Robbins just came out of an activist battle at Health Management Associates Inc (NYSE:HMA), and that fund is known to be media averse and does not like to over publicize its proxy fights with companies.
Ackman sold JCP after a huge loss
Despite Bill Ackman’s exit from J.C.Penney, the company’s largest shareholder with a 17.7% stake, the stock has been trading on the lowest of lows. Ackman sold the 39 million shares he held in last week, thus ending his long-winded battle with JCP which brought approximately $400 million in losses to his fund, Pershing Square Capital Management.
Richard Perry and Kyle Bass also bought J.C.Penney
Speaking of the hedge funds’ oath to buy J.C. Penney Company, Inc. (NYSE:JCP) until there is nothing left to buy, Richard Perry’s Perry Capital has a 8.6% position in the company, after it bought another 3 million shares on August 30. Perry Capital has an activist stake in J.C.Penney and has pushed for changes in the board of directors. Kyle Bass’ Hayman Capital has also been charmed by the chainstore operator, so Bass has a position in 5.2% of the company or 11.4 million shares. Bass also holds JCP’s debt.
Seems like only Soros Fund is left, which has not updated its holding in J.C. Penney Company, Inc. (NYSE:JCP) after Ackman’s exit from the company.