BOSTON Nov 14 Hedge fund manager William Ackman
has long been a cheerleader for ailing retailer J.C. Penney
, and during the third quarter other prominent investors
Lee Ainslie who runs Maverick Capital nearly doubled his
stake to hold 4.7 million shares in the retailer at the end of
the quarter, according to regulatory filings released on
Wednesday. Ricky Sandler's Eminence Capital took a new position
in Penney, owning 1.17 million shares at the end of the quarter.
Fund managers with more than $100 million in assets are
required to disclose holdings in U.S. stocks within 45 days
after the end of each quarter. While the data is backward
looking, it can hint at trends for certain stocks.
News that two well-performing fund managers put more money
to work in Penney is bound to be good news both for the company
and Ackman's Pershing Square Capital Management, Penney's
biggest investor with roughly 38 million shares.
On Friday Penney reported that sales tumbled 26.1 percent
during the third quarter, news that sent its shares down some 26
percent in the last five days.
Ackman is staying the course, telling anyone who will listen
that when Ron Johnson, the former Apple Inc executive he
handpicked to revive Penney, completes his job "you will shop at
As Penney's shares fell to a more than three-year low on
Wednesday, closing at $16.89, some other hedge fund managers
said privately that the price may finally be right to get in.
Any purchases made during the current quarter would not be made
public until early 2013.