What Sears' $400 Million Loan From CEO Means for Mutual Fund Investors

Welcome to MutualFunds.com

Please help us personalize your experience and select the one that best describes you.

Your personalized experience is almost ready.

Join other Individual Investors receiving FREE personalized market updates and research. Join other Institutional Investors receiving FREE personalized market updates and research. Join other Financial Advisors receiving FREE personalized market updates and research.

Thank you!

Check your email and confirm your subscription to complete your personalized experience.

Thank you for your submission

We hope you enjoy your experience

Channels

Fixed income news, reports, video and more.

Municipal bonds news, reports, video and more.

Practice management news, reports, video and more.

Portfolio management news, reports, video and more.

Retirement news, reports, video and more.

Learn from industry thought leaders and expert market participants.

Deepen your understanding of Responsible Investing and learn how it can potentially help you build a more successful practice.

Advisors

Receive email updates about fund flows, news, upcoming CE accredited webcasts from industry thought leaders and more.

Content focused on helping financial advisors build successful client relationships and grow their business.

Content geared towards helping financial advisors build better client portfolios.

Get insights on the industry trends and investment news from leading fund managers and experts.

What Sears' $400 Million Loan From CEO Means for Mutual Fund Investors

Sears Holdings Corporation
Shares of Sears Holdings Corp (SHLD) plummeted on Tuesday morning after reports were released that the company will be borrowing $400 million from its CEO’s hedge fund, ESL Investments. The company has been seeking cash for its turnaround as it has reported a net loss for the last nine quarters.

Inside Sears’ Struggle

The department store has been struggling during the past few years, seeing its last profitable year in 2011. In addition to its losses, the company’s annual revenue has been dropping every year since 2007.

The company’s cash flow problems have led it to seek long-term capital-structure flexibility from lenders, as well as massive cost cutting.

With the recent news of its CEO Edward Lampert borrowing cash from the hedge fund that he manages, many investors are even more weary of the future of Sears Holdings.

Mutual Funds to Watch

Mutual funds investors that own funds with exposure to Sears should pay close attention to the company’s future actions and stock price. Below are the mutual funds with the largest stake in Sears.

The Bottom Line

While Sears’ turnaround is questionable, some investors see an upside in the company. Regardless of the future of the retailer, any exposure to this company carries a significant amount of risk.

Conservative mutual fund investors should be cautious when investing in a mutual that has a significant holding in this company.


Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Popular Articles

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.


Read Next

Sears Holdings Corporation

What Sears' $400 Million Loan From CEO Means for Mutual Fund Investors

Shares of Sears Holdings Corp (SHLD) plummeted on Tuesday morning after reports were released that the company will be borrowing $400 million from its CEO’s hedge fund, ESL Investments. The company has been seeking cash for its turnaround as it has reported a net loss for the last nine quarters.

Inside Sears’ Struggle

The department store has been struggling during the past few years, seeing its last profitable year in 2011. In addition to its losses, the company’s annual revenue has been dropping every year since 2007.

The company’s cash flow problems have led it to seek long-term capital-structure flexibility from lenders, as well as massive cost cutting.

With the recent news of its CEO Edward Lampert borrowing cash from the hedge fund that he manages, many investors are even more weary of the future of Sears Holdings.

Mutual Funds to Watch

Mutual funds investors that own funds with exposure to Sears should pay close attention to the company’s future actions and stock price. Below are the mutual funds with the largest stake in Sears.

The Bottom Line

While Sears’ turnaround is questionable, some investors see an upside in the company. Regardless of the future of the retailer, any exposure to this company carries a significant amount of risk.

Conservative mutual fund investors should be cautious when investing in a mutual that has a significant holding in this company.


Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Popular Articles

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.


Read Next