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Hedge fund cuts Penney investment by nearly half

Plano, Texas – Financial woes continue to plague embattled J.C. Penney Company as hedge fund Perry Capital cut its stake in the retailer by nearly half, selling nine million shares of Penney stock last week.

Perry Capital reduced its share of Penney stock to 3.3 % from about 7% after the sale, which followed Penney’s announcement it intended to raise as much as $900 million through an equity offering of new stock. Perry Capital purchased 12 million shares of Penney stock this past summer, suggesting a change in how the company views Penney’s chances of survival

Perry Capital hedge fund manager Richard Perry sided with fellow hedge fund manager William Ackman, formerly the biggest single shareholder of Penney stock, in his publicized and ultimately failed battle to oust Penney CEO Mike Ullman.

 

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