In a regulatory filing, hedge fund Perry Capital, once the third largest holder of J.C. Penney stock, revealed that it dumped about half its stake in the company.
The fund, with about $US4.8 billion in assets under management, cut its stake from 8.62% of the company down to 3.28%, according to the filing.
Perry had been one of the top three hedge fund holders of J.C. Penney stock along with Soros Management and Glevniew Capital.
This is bad news for J.C. Penney, which has seen its stock drop almost 30% in the last week.
The first wave of heavy selling was sparked last week on Wednesday the 25th after Goldman Sachs released a report rating the stock an “underperform,” reasoning that the company will need to take on more debt to keep cash flowing.
The following Friday the company announced that it would issue almost $US1 billion worth of new shares at an offering price of $US9.65.
At the end of the trading day Monday, the stock topped out at $US8.81.