Though Edward Lampert
insists cutting his stake in Sears had nothing to do with a loss of faith in the company, news of the reduction sent shares plunging more than 20% this week. The hedge fund manager and chief executive of Sears Holding (SHLD
) cut back the scope of his ownership in the company from 55.4% to 48.4%, according to a regulatory filing released Tuesday.
ESL Investments, the hedge fund of Lampert that is tracked by GuruFocus, retains 26,427,295 Sears shares after reducing the holding by 21.94%, or about 7,428,774 shares, from 33,856,069 shares held at the end of the third quarter. Lampert said the recent reduction was in order to distribute 7.4 million shares among clients who were withdrawing from his firm, meaning none of those reduced came from his personal holdings. Including his personal holdings, Lampert owns roughly 51.6 million Sears shares. Continue Reading »