Eddie Lampert Buys AutoNation (AN) Shares ~ market folly

Wednesday, April 14, 2010

Eddie Lampert Buys AutoNation (AN) Shares

In a Form 4 filed with the SEC, Eddie Lampert's hedge fund firm RBS Partners has updated their stake in AutoNation (AN). Lampert has boosted his holdings by acquiring 137,143 shares on April 9th at a weighted price of $18.2887, 134311 shares on April 12th at $18.2963, and finally 320,985 shares on April 13th at $18.2891 per share. In total, RBS Partners recently purchased 592,459 shares of AN. After all their purchases, Lampert's RBS now owns 59,441,500 shares of AutoNation.

Keep in mind that he also bought shares in his other investment vehicles as well (ESL Investors, ESL Institutional Partners, etc). These purchases were on a smaller scale on the same dates and around the same prices. The overwhelming majority of his position though is held via his hedge fund RBS Partners. Lampert of course recently graced Forbes' billionaire list.

Lampert is known for taking highly concentrated positions in companies and his most notable stake is in Sears Holdings (SHLD) where he has helped orchestrate a turnaround for the company. Before founding his hedge fund, he worked with Robert Rubin at Goldman Sachs' risk arbitrage desk. Make sure to check out Eddie Lampert's RBS Partners portfolio as well as Lampert's annual letter.

Taken from Google Finance, AutoNation is "is the automotive retailer in the United States. As of December 31, 2009, the Company owned and operated 246 new vehicle franchises from 203 stores located in the United States. Its stores sell 33 different brands of new vehicles. It offers a range of automotive products and services, including new vehicles, used vehicles, parts and automotive services, and automotive finance and insurance products. It operates in three segments: Domestic, Import and Premium Luxury."

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