A $140 Billion Asset Manager Bets on H&M Rebound as Others Flee

Harris Associates raises stake, sees ‘substantial upside’
H&M has been taking right steps to fix issues, investor says

A sign hangs above the entrance to a H&M fashion clothing store, operated by Hennes and Mauritz AB, in London, U.K., on Friday, Oct. 16, 2015. Britain's inflation rate turned negative for only the second time since 1960 in September, reflecting weak price pressures that the Bank of England has warned will persist into 2016.Photographer: Chris Ratcliffe

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By Anna Molin

January 24, 2018 at 8:03 AM UTC

This article is for subscribers only.

As other investors head for the exit, a manager overseeing $140 billion in assets is betting on a turnaround in Hennes & Mauritz AB.

Harris Associates LP increased its stake in H&M fourfold last year and currently holds more than 5 percent of the Swedish fashion retailer’s shares, Justin Hance, portfolio manager and director of international research at the Chicago-based asset manager, told Bloomberg on Monday. Much of that position was built in the second half of 2017, when H&M’s stock price plunged, he said.