Glenview Capital Management LLC had joined J. Kyle Bass in raising its stake in retailer J.C. Penney Co. This made Glenview become the biggest shareholder in JC Penney. Glenview had bet that the retailer would recover even after Bill Ackman stepped down from its board and pulled out his shares last month.
Hayman Capital Management LP, the hedge fund owned by Bass held 11.4 million shares in the Texas based retailer. This was shown in a filing yesterday. In a separate filing, Glenview said that it owned 20.1 million shares or 9.1% in JC Penney.
Bass had set his company's focus on corporate turnarounds. He had already accumulated a long position in the retailer through purchasing the company's secured loans. He had also sold credit default swaps last month with a wager that the chain could stabilize its sales. JC Penney was also seen to get through the 2014 holiday season, a person familiar with the matter said. The new holding of Glenview had doubled its investment in the JC Penney.
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