BusinessWeek – Hedge-fund manager J. Kyle Bass is betting on a comeback by J.C. Penney Co., the retailer roiled by falling sales and a dispute with investor William Ackman, according to a person familiar with the matter.
Bass, who focuses on corporate turnarounds, has accumulated a long position in J.C. Penney over the past two weeks by buying the company’s secured loans, said the person, who asked not to be named because the information is private. He has also sold a type of insurance called credit-default swaps to other investors that pays off only if the Plano, Texas-based company defaults on its debts, an event he considers unlikely, said the person.
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