Perry Dumps Most Penney's Shares

Oct 1 2013 | 1:34pm ET

Perry Capital was one of Pershing Square Capital Management's few allies in its battle to reshape J.C. Penney Co. Now, the firm is joining its fellow New York-based hedge fund in exiting the struggling retailer.

Perry slashed its stake in Penney by nearly half, following Penney's announcement that it would seek to raise nearly $1 billion by selling new shares, a move that will dilute existing shareholders. Perry had built up an 8.6% stake in Penney, but cut that to just 3.3% between Friday and yesterday.

Perry was among Pershing Square founder William Ackman's only allies in his bid to force a quick replacement of Penney's interim CEO Myron Ullman and Chairman Thomas Engibous, writing in August that "shareholders and creditors have increasingly lost confidence in the company." The firm even added shares after Pershing Square dumped its entire Penney stake, following a dispute that led Ackman to resign from its board.

Penney shares are currently trading at their lowest price in more than 10 years.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note