Marathon Asset Management Throws Wrench into Bill Ackman’s Plan to Revive JC Penny

August 15th, 2012
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Marathon Asset Management LP came up on the winning side of its bet that a plan backed by Bill Ackman of Pershing Square Capital Management to revive troubled retailer, J.C. Penny Co. would fall short. According to Bloomberg News, Marathon Asset Management, a $10 billion credit hedge fund, began accumulating five-year credit-default swaps on J.C. Penny Co. early in 2012 that have since been sold for significant gains.

Bill Ackman has accumulated an 18 percent position in J.C. Penny’s stock and has backed a plan by CEO Ron Johnson to turnaround declining sales; however, the derivative trades of Marathon Asset Management LP may have exacerbated J.C. Penny’s credit risk. The retailer’s shares fell 3 percent when the credit-default swap trades were announced.
For Detailed Investor Profiles on these Investors, click below:
Pershing Square Capital Management
Related People: Nicholas Botta; Roy J. Katzovicz; Scott Ferguson*; William 'Bill' Ackman
Related Entities: Leucadia Corporation (NYSE: LUK); Pershing Square Capital; Pershing Square IV; Pershing Square LP
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Featured Reports

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