(Adds investor comment, background)
Dec 5 Hedge fund Hayman Capital Management LP
sold all its shares in J.C. Penney but still holds the
ailing retailer's debt, fund manager Kyle Bass told Bloomberg TV
Penney's shares fell as much as 10 percent, the biggest drop
since Sept. 27, before closing down 8.4 percent at $8.85 on the
New York Stock Exchange.
Dallas-based Hayman disclosed a 5.2 percent stake in Penney
in September. In November it reported that it had reduced the
stake to about 1.87 percent. (link.reuters.com/qaz25v)
Hayman Capital is known for earning millions by betting
against the overheated subprime mortgage market before the
J.C. Penney said on Tuesday that comparable-store sales rose
for the second straight month in November as its aggressive
discounts and the return of some in-house brands brought
shoppers back to its stores.
Bass told CNBC television on Oct. 9 that while he believed
J.C. Penney's chief executive, Mike Ullman, and his team would
be able to stabilize sales, his firm was "not investing in a
turnaround" of the company.
Aaron Cowen, chief investment officer of Suvretta Capital
Management LLC, told Reuters last month that J.C. Penney shares
offer insufficient reward for the risk.
He said the company could go bankrupt within the next
several years if it continued along its "current trajectory for
long periods of time."
(Reporting by Aditi Shrivastava and Sam Forgione; Editing by
Don Sebastian and Leslie Adler)