Hedge fund manager Bill Ackman has severed his ties with retailer JC Penney.
The New York Times reported that Ackman, whose New York-based hedge fund firm Pershing Square Capital is the retailer’s largest shareholder, sold his entire approximate 18% stake on Monday. The sale would cost Pershing Square about $473 million in losses.
The sale come nearly two weeks after Ackman resigned from the board amid a public feud with his fellow directors in the board. The hedge fund manager, who pushed to oust JCP chairman Tom Engibous, also claimed that the company's board “isn’t functioning effectively” with major decisions made without the advice of all directors. Ackman also said that important information regarding the retailer has been withheld from him.
JC Penney is not expected to receive any proceeds from the sale.
Pershing Square, which manages about $10 billion in assets, made its first investment in JC Penney three years ago on the belief that the failing retailer could turn around with new management.