Ackman Throws In His Soiled JCPenney Towel

by Alyssa Oursler | August 27, 2013 9:35 am

Bill Ackman must have been jealous that Miley Cyrus was stealing all the headlines Sunday — so he stole them back Monday afternoon.

The high-profile hedge fund manager announced that Pershing Square[1] is selling its entire stake of struggling department store JCPenney (JCP[2]). Not that anyone who has followed the Ackman-JCP showdown should be surprised. A quick rundown:

Better late than never, I guess.

Of course, while the brouhaha between Ackman and JCP might finally have reached an ending, both the investor and the retailer still have big losses to overcome.

Ackman’s other big headline-inducing investment of late was his short of Herbalife (HLF[7]) — a stock that has doubled since he began ripping on it. The two public flops caused Ackman to write a letter to investors last week admitting a few failures that began with a section titled “Mistakes.”[8]

Meanwhile, JCPenney posted an ugly wider-than-expected loss last week, along with its ninth straight drop in quarterly sales. And the stock — which has suffered a 46% haircut during the past 12 months — opened lower today following Ackman’s disclosure.

After the sale, Perry Capital — which owns 16 million shares — will become the largest shareholder … and hopefully the Ackman headlines (and the Miley ones, for that matter) will die a slow, quiet death.

As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.

Endnotes:
  1. Pershing Square: http://investorplace.com/2013/08/bill-ackman-13f-beam-bkw-jcp-mdlz-matx-ggp/
  2. JCP: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCP
  3. TGT: http://studio-5.financialcontent.com/investplace/quote?Symbol=TGT
  4. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  5. The board wasn’t having it: http://investorplace.com/2013/08/jcp/
  6. quit the board shortly after: http://slant.investorplace.com/2013/08/jcpenney-fallout-why-its-time-to-forget-bill-ackman/
  7. HLF: http://studio-5.financialcontent.com/investplace/quote?Symbol=HLF
  8. began with a section titled “Mistakes.”: http://online.wsj.com/article/SB10001424127887324619504579026812246154996.html

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