Another hedge fund has taken advantage of Pershing Square Capital Management's exit from J.C. Penney Co., becoming one of the struggling retailer's largest shareholders.
Glenview has bought nearly 12 million more Penney's shares, it said in a regulatory filing, bringing its stake up to 9.1%. The hedge fund's hoard of 20.1 million shares is in line with the 20 million owned by Soros Fund Management and 19 million owned by Perry Capital. Hayman Capital Management also announced a large stake in Penney's, of 5.2%.
Pershing Square sold its entire 18% stake in Penney's late last month, after founder William Ackman resigned from the retailer's board amidst a dispute with his fellow directors. Pershing Square lost some $500 million on the deal.
Unlike Perry, Glenview is unlikely to take up Ackman's cause—the quick removal of both Penney's interim CEO and chairman. The hedge fund has said it supports CEO Myron Ullman.
In any event, none of Penney's large number of remaining hedge fund holders will be able to match Ackman's firepower: The company recently adopted a poison pill to prevent any shareholder from taking more than a 10% stake.