How An Overconfident Billionaire Brought A 111-Year Old Retailer To Its Knees

The actions of hedge fund manager Bill Ackman have sent J.C. Penney into a three-year tailspin. Now that he is gone, the question everyone is asking is if the damage he inflicted is permanent.


Ackman is what’s known as an activist investor, essentially what was known in the old days as a “corporate raider” or “greenmailer.” These types of investors take sizable financial stakes in what they view as undervalued companies then agitate for changes that will presumably boost the share price.

Ackman, who has had an illustrious career as a sharp investor, identified J.C. Penney as one of those undervalued companies in 2010, becoming its largest shareholder that October and subsequently joining the chain’s board of directors.

Since he became involved, however, J.C. Penney’s stock has fallen to $13.40 a share from $31.64 when his stake was disclosed.

Source: How An Overconfident Billionaire Brought A 111-Year Old Retailer To Its Knees

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