JCPenney May Survive After All, Says Hedge-Fund Manager Who Bet Against It

JCPenney (NYSE:JCP) just got a backhanded endorsement from hedge-fund manager David Einhorn: He told his investors that he's no longer betting against the struggling chain's survival. Einhorn said in a July 26 investors letter that taking a short position in JCPenney—essentially betting that the stock would fall—was his "most profitable short of 2012"—but not anymore. "Though the retailer was poorly positioned, the shares rocketed in early 2012 based on overhyped promises put forth by a highly promotional CEO," Einhorn wrote. "We doubted the new strategy would succeed. We covered when the Board fired the CEO before he could turn the company into a penny stock." Story