Kyle Bass , founder of Hayman Advisors, purchased a 5.2% stake in retailer J.C. Penney, according to a filing with the SEC dated Sept. 3 reported by GuruFocus Real Time Picks. Bass bought 11,428,450 shares in total on Aug. 30. At a closing cost of $12.48 that day, the total transaction amount was almost $143 million.
The buy came several days after Bill Ackman of hedge fund Pershing Square announced he would sell his entire 18% stake in the company, taking a 50% loss on his investment first disclosed in October 2010. Relations between Ackman and the company had soured in August, as the board resisted his demand for a new board chairman. The company also disapproved of his decision to release the lengthy letter calling for a board chairman replacement and accelerated CEO search to the press.
Ackman stepped down from the board on Aug. 13. He was succeeded by Ronald W. Tysoe, "a highly respected retail industry executive who spent 16 years as vice chairman at Federated Department Stores Inc. (now Macy's Inc.)," the company said in a statement.