J.C. Penney doesn’t have many fans on Wall Street. But a big one emerged on Thursday: George Soros.
The billionaire hedge fund manager disclosed a 7.9 percent stake in the embattled retailer, with 17.4 million J.C. Penney shares, according to a securities filing. The stake is passive, meaning Mr. Soros will not attempt to exert influence.
Penney’s shares rose nearly 7 percent in trading after hours. The stock was up 0.3 percent during the day.
Mr. Soros is at least the second prominent hedge fund manager to take a shine to Penney, whose chief executive, Ron Johnson, was ousted in April after 17 challenging months on the job.
William A. Ackman, the head of Pershing Square Capital Management, also has a sizable stake. Penney’s shares fell more than 50 percent during the tenure of Mr. Johnson, a former Apple executive whom Mr. Ackman supported.
Mr. Johnson brought fresh ideas to Penney, trying to attract a new type of shopper. But those failed to improve the company’s sales. In Feburary, Mr. Johnson admitted he made “big mistakes†in his turnaround effort, as the company reported a $552 million quarterly loss.
