Edward Lampert Shifts Investment Gears in Fourth Quarter

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Feb 19, 2015
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Guru Edward Lampert (Trades, Portfolio) adjusted his investment approach in the fourth quarter of 2014. In the third quarter, he sold but did not buy stock. In the fourth quarter, he bought three stocks and sold none.

Although Lampert is chairman and CEO of Sears Holdings Corp (SHLD, Financial), which has been struggling, he has a solid track record as an investor. Since founding RBS Partners, L.P. in 1988, he has logged average annual returns of 29%.

Actually, Lampert’s limited fourth-quarter activity is not unusual for him. He often goes without buying stock in quarters, but the third quarter was the only quarter in 2014 that was like that.

In the fourth quarter, Lampert bought 28,105,403 shares of Sears Canada Inc. (SRSC, Financial), a Toronto-based retailer, for an average price of $9.36 per share. That transaction had a 12.2% impact on his portfolio.

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Gurus Bruce Berkowitz (Trades, Portfolio) and Francis Chou (Trades, Portfolio) also have shares of Sears Canada in their portfolios.

Lampert acquired 216,605 shares of International Business Machines Corp (IBM, Financial), a technology and consulting corporation based in New York, for an average price of $166.28 per share. That purchase had a 1.6% impact on his portfolio.

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Gurus Jim Simons (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Brian Rogers (Trades, Portfolio), Prem Watsa (Trades, Portfolio), Robert Bruce (Trades, Portfolio), Warren Buffett (Trades, Portfolio), Bill Frels (Trades, Portfolio), HOTCHKIS & WILEY, John Buckingham (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), John Rogers (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Irving Kahn (Trades, Portfolio), Ronald Muhlenkamp (Trades, Portfolio), James Barrow (Trades, Portfolio), Jean-Marie Eveillard (Trades, Portfolio), Dodge & Cox, Tom Russo (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Chris Davis (Trades, Portfolio), David Dreman (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Mark Hillman (Trades, Portfolio) have IBM in their portfolios.

Lampert also bought 297,779 shares of Gap Inc (GPS, Financial), a San Francisco-based clothing and accessories retailer, for an average price of $39.25 per share. The transaction had a 0.57% impact on his portfolio.

Previously, Lampert divested himself of his Gap holdings in the third quarter.

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Gurus Steven Cohen (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Murray Stahl (Trades, Portfolio), James Barrow (Trades, Portfolio), Manning & Napier Advisors Inc, Paul Greenblatt and Ray Dalio (Trades, Portfolio) have shares of Gap in their portfolios. Gurus Jim Simons (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Caxton Associates (Trades, Portfolio), Steve Mandel (Trades, Portfolio) and John Griffin (Trades, Portfolio) sold their stakes in Gap in the fourth quarter. Guru David Dreman (Trades, Portfolio) sold his stake in the third quarter.

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