Promoted
Business

Hedge Funds Drop Men’s Wearhouse As Sale Hopes Dim

The embattled company’s latest leadership stumbles are beginning to trickle into the hedge fund world, which pulled millions in the quarter ending Sept. 30.

Reuters / Brenden McDermid

The hedge fund world lost patience with Men’s Wearhouse last quarter, as the company struggled to rebound from a rocky summer that saw its founder George Zimmer depart.

Part of post-Zimmer landscape at Men’s Wearhouse appeared to be a potential takeover by menswear rival Jos. A Bank, which yesterday dropped its $2.3 billion bid for the company, saying it would seek other acquisition targets.

They weren’t the only ones dumping Men’s Wearhouse. According to hedge fund data analysis site Insider Monkey, hedge funds, growing disenchanted with the turmoil at the retailer sold off millions of shares in the quarter ending Sept. 30.

According to Insider Monkey’s Meena Krishnamsetty, there were 20 hedge funds with a total investment of $170 million at the end of second quarter. That number droped to 16, and the value of their holdings declined to $104 million by the end of the third quarter.

As for who was selling off shares, Krishnamsetty said that Glenhill Advisors sold out its $31 million position, while billionaire Ken Griffin’s Citadel reduced its $30 million position down below $2 million.

Still, Men’s Wearhouse had its believers: “Ricky Sandler’s Eminence Capital recently disclosed a $200+ million position in a 13D filing, though the fund had zero shares at the end of last quarter.

Check out more articles on BuzzFeed.com!

Mariah Summers is a business reporter for BuzzFeed News and is based in New York. Summers reports on hospitality, travel and real estate.
Contact Mariah Summers at mariah.summers@buzzfeed.com
 
 
Here Are The Top Stories
  • Greece voted "no" on sweeping new austerity measures tied to further bailout funds. Its future in the eurozone is uncertain, and its creditors are unimpressed.
  • The U.S. defeated Japan 5-2 in Vancouver in the final match of the FIFA Women's World Cup. It was the highest scoring final in the history of the tournament ⚽️
  • Captured New York prison escapee David Sweat has been released from hospital and is back in jail.
Get The News App

More News

More News

Now Buzzing