Sears chief Edward Lampert\'s hedge fund more than doubles stake in CIT Group

Date: Wednesday, February 18, 2009
Author: Chicago Tribune

ESL Investments Inc., the hedge-fund firm run by Sears Holdings Corp. Chairman Edward Lampert, more than doubled its stake in CIT Group Inc. in the fourth quarter, according to a filing with the Securities and Exchange Commission.

ESL owned 15.4 million shares of CIT as of Dec. 31, according to Tuesday's filing, up from 7.3 million in the third quarter. The Greenwich, Conn.-based hedge fund also bought 11.5 million shares of Genworth Financial Inc.

CIT, a New York-based commercial lender that became a bank to qualify for federal bailout money, has reported seven consecutive quarterly losses. The stock has declined 90 percent in the past 52 weeks.

Genworth, an insurer that was spun off by General Electric Co. in 2004, has lost about 91 percent of its stock market value over the past 52 weeks. The company also is seeking money from the federal bailout program.

Lampert made his fortune by investing in underperforming companies.

An ESL spokesman didn't immediately return a call seeking comment.