Sears Holdings Corp. has led to volatile returns making Edward Lampert use US$393 million of shares in AutoNation Inc. to cater to the demand of client redemptions.
On June 10, about 41% of Lampert's ESL Partners LP distributed 9.09 million AutoNation shares. This comprises about 41% of its stake in the auto retailer firm. This was according to a regulatory filing dated June 12. Filings also show that the hedge fund used part of its stake in Orchard Supply Hardware Stores Corp. to meet client redemption demands.
Clients have been pulling money out of ESL Partners after seeing Sears Holdings Corp. in struggle. The firms grossed assets decreased by 24% to US$5.1 billion at the end of 2012. The number of investors in the fund also declined to 164 from 250 according to filings.
Spokesman for Florida based ESL Investments Inc., Steven Lipin did not return calls to comment on said report.
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