Berkowitz's Fairholme is Getting Killed on This Huge Holding Today...
Tweet
Share
E-mailGet Alerts SHLD Hot Sheet
Join SI Premium – FREE
Hedge funds having a rough Tuesday include:
Accroding to data from Streetinsider's Hedge Fund Insider, Berkowitz had a significant stake in today's stock loser: Sears Holdings (Nasdaq: SHLD).
Berkowitz reported holding 16,313,973 in the first-quarter of 2011, moving that to 16,380,680 in the next quarter, and back down to 16,270,692 in the latest quarterly filing. The position gives Berkowitz about a 15 percent stake in Sears.
Here's the worst part: Sears started 2011 at about $67 per share, hitting a high of $94.79 in February, and is now at $34.59. Things get even worse going back a couple of years, when Sears was regularly at $100 or more per share.
And Berkowitz probably hasn't adjusted his Sears stake since the end of September, he's been hanging on to Sears for a while now.
So, with today's move, Berkowitz might be facing a paper loss of $187,930,000...but that is just the bottom. Assuming an average cost of $100 per share over the last few years, and average holdings of about 15 million, that loss escalates to $983,700,000, or just about $1 billion.
How about some good news? Stephen Mandel's Lone Pine Capital has been hanging on to 2,364,200 put options for Sears Holdings, effectively taking the opposite stance of Berkowitz. Getting into options can be a tricky situation (volatility, time value, specific time of purchase), but one might speculate that Mandel enjoyed riding Sears to its current level.
Again, Sears stock is down about 25 percent following the earlier announcement of store closings on poor holiday sales. Read more about that here.
- Bruce Berkowitz's Fairholme Capital Management
Accroding to data from Streetinsider's Hedge Fund Insider, Berkowitz had a significant stake in today's stock loser: Sears Holdings (Nasdaq: SHLD).
Berkowitz reported holding 16,313,973 in the first-quarter of 2011, moving that to 16,380,680 in the next quarter, and back down to 16,270,692 in the latest quarterly filing. The position gives Berkowitz about a 15 percent stake in Sears.
Here's the worst part: Sears started 2011 at about $67 per share, hitting a high of $94.79 in February, and is now at $34.59. Things get even worse going back a couple of years, when Sears was regularly at $100 or more per share.
And Berkowitz probably hasn't adjusted his Sears stake since the end of September, he's been hanging on to Sears for a while now.
So, with today's move, Berkowitz might be facing a paper loss of $187,930,000...but that is just the bottom. Assuming an average cost of $100 per share over the last few years, and average holdings of about 15 million, that loss escalates to $983,700,000, or just about $1 billion.
How about some good news? Stephen Mandel's Lone Pine Capital has been hanging on to 2,364,200 put options for Sears Holdings, effectively taking the opposite stance of Berkowitz. Getting into options can be a tricky situation (volatility, time value, specific time of purchase), but one might speculate that Mandel enjoyed riding Sears to its current level.
Again, Sears stock is down about 25 percent following the earlier announcement of store closings on poor holiday sales. Read more about that here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- NVIDIA reports 9.3% passive stake in Nebius
- Interactive Brokers adds nine crypto tokens and stablecoin withdrawals
- Anthropic, Blackstone and Hellman & Friedman launch enterprise AI firm Ode
Create E-mail Alert Related Categories
Hedge FundsRelated Entities
Lone Pine Capital, Fairholme Capital Management, Hedge Funds, Bruce BerkowitzSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
