Kohl's Is the Department Store of Choice for Hedge-Fund ManagersBy
Eddie Lampert is famous for being an influential hedge-fund manager and the chief executive officer of Sears Holdings Corp., a company where he’s also the top investor.
But his fellow hedge-fund honchos are backing a different department store: Kohl’s Corp.
Kohl’s, a chain with about 1,200 stores, accounted for the biggest chunk of the firms’ investment dollars last quarter. The net investment amounted to nearly $224 million, with Kohl’s shares climbing about 20 percent in the period. Among the pack, Citadel was the biggest investor in the retailer.
Every department-store chain is going through a painful retrenchment right now, with more consumers skipping the mall and shopping online instead. But Kohl’s is faring better than many.
It also has teamed up with Amazon.com Inc. in a partnership that could help mitigate a brick-and-mortar decline. Kohl’s is selling the e-commerce giant’s products in some of its stores and accepting returns from Amazon customers.
Kohl’s slogan is “expect great things” and -- for now, at least -- hedge-fund managers seem to be taking that to heart.