Kyle Bass Thinks Worst is Over for JCPenney (JCP); Places Bet on Rebound

August 20, 2013 6:39 AM EDT
Hedge fund giant J. Kyle Bass, of Hayman Capital Management LP, is betting on a turnaround in JCPenney's (NYSE: JCP) fortunes, amid outcries from the likes of Bill Ackman for a management change as sales declines have showed no real signs of stopping.

Bloomberg said today that Bass has accumulated a long position in the beleaguered retailer over the last two weeks by purchasing secured debt. Bass also sold credit-default swaps as insurance that pays if the retailer doesn't end up paying on its debt.

Bass isn't alone in hoping for a turnaround in JCPenney; recently, Soros Fund Management and Glenview Capital have both accumulated stakes in the company as a bet against Bill Ackman. Soros is the second largest JCPenney shareholder behind Ackman, while Glenview is 10th largest.

Shares of JCPenney are lower in early trading Tuesday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Hedge Funds, Hot Corp. News, Trader Talk

Related Entities

William Ackman, Glenview Capital Management, Hayman Capital, Soros Fund Management, Hedge Funds