Another major fund is getting out of J.C. Penney Company, Inc. (NYSE:JCP). An amended 13-D filing from Vornado Realty Trust (NYSE:VNO) for J.C. Penney shows that Vornado CEO Steven Roth has resigned from the retail chain’s board. The filing also indicates that Vornado will be exiting its position in the company.
Vornado exits J.C. Penney
It isn’t a huge surprise that Vornado Realty Trust (NYSE:VNO) is dumping all of its stake in J.C. Penney Company, Inc. (NYSE:JCP). The firm slashed its stake in the retailer by 40 percent back in March, and Roth has been under pressure to cut investments. Also the fund had said in August that it would sell its 6 percent stake in the retailer.
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According to the 13-D that was filed today with the Securities and Exchange Commission, Vornado Executive Vice President Joseph Macnow said they expected to exit their investment in J.C. Penney “in the not-too-distant future.”
Vornado and Pershing Square
Vornado Realty Trust (NYSE:VNO)’s exiting of J.C. Penney Company, Inc. (NYSE:JCP) comes not long after Bill Ackman’s Pershing Square Management revealed its intention to exit the retailer. Ackman exited after his very public spat with the retail chain’s board when he attempted to get them to rush the search for a new permanent CEO.
Together, Vornado Realty Trust (NYSE:VNO) and Pershing Square did hold approximately 24 percent of J.C. Penney’s outstanding shares, with Ackman’s fund holding the lion’s share of that amount. Vornado had also backed Ackman’s activist campaign with the retailer, and the two funds had agreements regarding their investments in the retail chain.
Action in J.C. Penney
Aside from the public brawl between J.C. Penney Company, Inc. (NYSE:JCP) and Ackman, a lot has been going on with the retailer. CNBC’s Jim Cramer actually told investors that the company’s stock was a good investment and that they should jump on its shares. Shares of the retail chain went up slightly after that, but they’re trading just under $14 a share as of late Friday.