This Hedge Fund Made $490 Million Today
Bill Ackman’s Hedge Fund, Ackman and Vornado realty, reportedly broke the bank (or a few) today thanks to JC Penney’s (NYSE:JCP) surging stock ticker (shares finished up 17.47%). Penney’s stock soared on news that the company has signed Apple’s head retail man Ron Johnson to serve as its next CEO. Johnson is credited with creating a multi billion dollar retail market for Apple (NASDAQ:AAPL) products from scratch over his 10 year tenure with the tech superpower. He will take over at Penney on Nov. 1st.
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Ackman’s wild returns are largely the product of his own influence at Penney (NYSE:JCP). The investor purchased some $903 million dollars worth of shares of the chain department store retailer last October, and is known to exert as strong influence on the direction of company’s in which he takes a heavy stake. Largely a product of Ackman’s purchase, JCP shares were consistently recording gains over the past nine months, but none even remotely as substantial as today’s surge in value.
Rumors are astir that Ackman may have been the first rep. for Penney to reach out to Johnson, and that he personally recommended to JCP’s board that they take considering hiring the standout Apple (NASDAQ:AAPL) Executive. Ackman’s efforts came to fruition today, in more ways than one, as that initial $903 million dollar investment is now worth close to $1.4 billion on paper. If Johnson’s track record at Apple is any indication, JC Penney shareholders and Bill Ackman could continue to see gaudy returns on their money.
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