Eddie Lampert Has Blown Billions in Sears (SHLD) Shareholder Wealth
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A tip for hedge fund managers: don't try to run a retailer.
Look no further than hedge fund manager Eddie Lampert's tenure as the head of Sears Holdings (Nasdaq: SHLD). He has destroyed countless billions in his and other shareholders wealth in his feeble attempt to turnaround has-been retailers K-Mart and Sears.
One glaring example of his ineptness is the awful share buybacks.
Since September 14, 2005, the company's Board has bought back nearly $6 billion in company stock. Now the entire market capitalization of the company is about $3.7 billion.
A good chunk of the wealth destroyed in Sears has been Lampert's own. Lampert's ESL beneficially owned 61 percent of the outstanding common stock as of October 29, 2011.
Tuesday's 25 percent decline amid soft same-store sales results and news of widespread store closings has chopped off more than $1.1 billion from the company's market value.
Look no further than hedge fund manager Eddie Lampert's tenure as the head of Sears Holdings (Nasdaq: SHLD). He has destroyed countless billions in his and other shareholders wealth in his feeble attempt to turnaround has-been retailers K-Mart and Sears.
One glaring example of his ineptness is the awful share buybacks.
Since September 14, 2005, the company's Board has bought back nearly $6 billion in company stock. Now the entire market capitalization of the company is about $3.7 billion.
A good chunk of the wealth destroyed in Sears has been Lampert's own. Lampert's ESL beneficially owned 61 percent of the outstanding common stock as of October 29, 2011.
Tuesday's 25 percent decline amid soft same-store sales results and news of widespread store closings has chopped off more than $1.1 billion from the company's market value.
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