Eddie Lampert is the founder of ESL Investments, a hedge fund with close to $6 billion in stated assets, which manages RBS Partners.
The fund just filed a 13F with the SEC. The hedge fund is extremely concentrated, with five positions making up almost the entire portfolio.
Michael Zimmerman’s Prentice Capital is having a strong year
Prentice Capital was up 15.3% net last month, bringing its year-to-date gain to 49.4% net. Prentice touted its ability to preserve capital during market downturns like the first quarter of this year and the fourth quarter of 2018. Q3 2020 hedge fund letters, conferences and more Background of Prentice Capital The fund utilizes a low Read More
Sears Holdings Corporation (NASDAQ:SHLD) is the largest holding of Eddie Lampert. Sears Holdings Corporation (NASDAQ:SHLD) makes up 45% of the portfolio, and the fund holds 43 million shares. The retailer has not been doing well lately, as the stock is down over 30% since May 2011. Eddie Lampert is by far the largest shareholder of the company, with over 40% of shares outstanding. Sears recently announced a spin off in an attempt to raise money.
The second largest holding of ESL is AutoNation, Inc. (NYSE:AN). The hedge fund owns 48 million shares of the car dealership. AutoNation, Inc. (NYSE:AN) represnets 30% of the hedge fund’s holdings. Lampert is also the largest shareholder of the company, owning 30% of outstanding shares. No changes were reported for the holding in the second quarter.
The third largest holding is The Gap Inc. (NYSE:GPS). With 29 million shares held, The Gap Inc. (NYSE:GPS) makes up 13% of the hedge fund’s portfolio. The stake in The Gap Inc. (NYSE:GPS) was reduced by 5% in the quarter. This might have to do with redemptions, which the hedge fund is facing from investors.
Eddie Lampert owns 730,000 shares AutoZone, Inc. (NYSE:AZO). The holding now, is less than 5% of ESL’s portfolio. The holding was reduced by over 60% in the recent quarter. In 2009, Lampert owned over 23 million shares of the auto parts company. Since that time, the fund has been reducing its stake in AutoZone, Inc. (NYSE:AZO).
Capital One Financial Corp. (NYSE:COF) is the fifth largest stake. Lampert owns 4.4 million shares, which make up over 4% of the hedge fund’s portfolio. The stake was reduced by five percent in the second quarter.
Other holdings include CIT Group Inc. (NYSE:CIT) (unchaged), Genworth Financial Inc (NYSE:GNW) increased by 28%, iStar Financial Inc. (NYSE:SFI) increased by 94%, Avon Products, Inc. (NYSE:AVP) new purchase, Seagate Technology PLC (NASDAQ:STX) reduced by 53%, Big Lots, Inc. (NYSE:BIG) reduced by 4%, and Orchard Supply Hardware Stores Corp (NASDAQ:OSH (a spin-off from Sears) reduced by 23%
Disclosure: Long CIT