Greenlight Capital's David Einhorn closed out his JCPenney short position in the second quarter, according to a letter sent to investors, Reuters Katya Wachtel reports.
"J.C. Penney (short): This was our most profitable short of 2012. Though the retailer was poorly positioned, the shares rocketed in early 2012 based on overhyped promises put forth by a highly promotional CEO. Following the presentation of its strategy, the new CEO dumped a bunch of his personal stock on the market. We doubted the new strategy would succeed. We covered when the Board fired the CEO before he could turn the company into a penney stock," Einhorn wrote in the letter.
It's trading higher in the wake of the news.
JCPenney's stock was last trading up about 2% in today's session.
The struggling retailer is the stock that activist investor Bill Ackman has been publicly cheerleading for over the past couple of years.
So far, Ackman, who has has 17.74% stake in JCPenney, has taken a bath betting on the retailer.
