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Fast Eddie Lampert Bets on Housing, Mortgages

Posted By Barry Ritholtz On June 11, 2008 @ 9:14 pm In Consumer Spending,Real Estate,Trading | Comments Disabled

Ed Lampert, CEO of Sears Holdings (SHLD) has been called the next Warren Buffett:

"Billionaire hedge-fund manager Edward S. Lampert is placing new bets on a U.S. housing recovery, buying stakes in beaten-up home builders, mortgage lenders and a home-improvement retailer.

Mr. Lampert’s ESL Investments Inc., which owns half of department-store giant Sears Holdings Corp. and 40% of car retailer AutoNation Inc., has previously focused with mixed success on retail and bank stocks.

Recently, the Greenwich, Conn., hedge fund, which controls investments it valued at about $11.6 billion in its most recent government financial report, began picking up shares in hard-hit housing-related stocks. ESL acquired small stakes in U.S. home builders Centex Corp. and KB Home, according to its latest Securities and Exchange Commission filings. At recent prices, the stakes in the two home builders are valued at $10.4 million and $10.8 million, respectively.

ESL also is tip-toeing into mortgage origination and servicing, acquiring about four million shares of CIT Group Inc., a struggling subprime home and commercial lender, as well as 1.4 million shares of PHH Corp., a mortgage originator and mortgage-service company. The shares are valued currently at about $35.5 million and $25.2 million, respectively. ESL spokesman Steve Lipin declined to comment on the investments."

AutoNation (AN), CIT Group (CIT), KB Homes (KBH), PHH Corp (PHH), Centex Homes (CTX), Home Depot (HD)

Somehow, I don’t think Buffett is buying any of those names . . .


"The Next Warren Buffett?" [1]     http://mybackpagesbyjessefelder.blogspot.com/2008/06/next-warren-buffett.html

Lampert Puts Money On Housing Rebound [2]
Stakes Being Taken In Battered Builders, Lenders and Retailer
WSJ, June 12, 2008

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URL to article: http://www.ritholtz.com/blog/2008/06/fast-eddie-lampert-bets-on-housing-mortgages/

URLs in this post:

[1] "The Next Warren Buffett?": http://mybackpagesbyjessefelder.blogspot.com/2008/06/next-warren-buffett.html

[2] Lampert Puts Money On Housing Rebound: http://online.wsj.com/article/SB121321901442365679.html

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