Jana Partners slashed stake in Macy’s by 84% after pushing for e-commerce pivot

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Jana Partners minimize its holding in Macy’s by 84% in the final months of 2021 not lengthy after the activist funding agency prodded the retailer to think about options for its on-line unit, in response to a regulatory submitting.

The New York-based hedge fund reported on Monday that it owned 760,780 shares in Macy’s on the finish of the fourth quarter on Dec. 31, 2021. That compares with 4.6 million shares the hedge fund owned on the finish of the third quarter. The agency’s holding on the finish of September amounted to 1.5% of the company.

The submitting, known as a 13-F submitting, comes 45 days after the top of the quarter and particulars what money managers owned in US shares on the finish of the quarter. While the submitting is backward wanting, it’s typically intently watched for indicators of funding developments or what outstanding corporations like Jana Partners are considering.

The submitting provides no rationalization for any strikes and Jana Partners declined to remark.

In October Jana Partners first introduced its case for Macy’s at an funding convention in New York after which adopted up with a letter to the company’s board, pushing for administration and the board to think about options for the quick rising on-line unit.

Macy’s has mentioned it’s amenable to reviewing its business structure.
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Jana Partners argued that the e-commerce business may very well be price a a number of of Macy’s market valuation, which has risen to $7.6 billion from $6.9 billion when Jana made its first presentation. 

Macy’s introduced in November that it’s working with AlixPartners to review its business structure and Macy’s CEO mentioned on an earnings name that “[we] recognize the significant value of the market assigning to pure e-commerce businesses.”

Shares of Macy’s have been down 2.2 %, to $24.90, in early afternoon buying and selling.