Saturday, 20 December 2014
Last updated 1 day ago
Jun 14 2013 | 11:27am ET
For the third time in two years, ESL Investments has paid out redemptions in-kind.
Investors redeeming from the Bay Harbor, Fla.-based firm received shares of AutoNation Inc. and Orchard Supply Hardware Stores Corp. on Monday, ESL told the Securities and Exchange Commission this week. The distributions were made "on a pro rata basis to limited partners that elected to redeem all or a portion of their limited partnership interests in June 2013."
Paying out redemptions in-kind rather than in cash protects ESL's remaining investors from paying capital-gains taxes on the sales. But the $393 million distribution in AutoNation shares, accounting for 41% of ESL's stake in the company, leaves those remaining investors even more heavily reliant on ESL's major investment, retailer Sears Holdings Corp., which has fallen 19% in the last several weeks. ESL chief Edward Lampert is Sears' CEO.
This week's in-kind payouts follow similar moves in February and November of last year.
ESL investors have been heading for the doors recently; 86 of its 250 investors redeemed last year, which also saw ESL's assets drop by 24% to $5.1 billion. ESL lost 4% through the first nine months of last year.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.