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What the Sears Real Estate Joint Venture Means For Mutual Fund Investors (SHLD, GGP)
Shauna O'Brien Apr 01, 2015
On Wednesday, Sears Holdings (SHLD) announced that it has entered into a real estate joint venture with General Growth Properties (GGP). Here’s what the news mean for mutual fund investors.
Inside the News
The two companies have entered into a real estate agreement that will help the struggling retailer raise $2.5 billion by selling top properties and then leasing them back from GGP.
The deal will include Sears selling 254 of its Sears and Kmart properties.
Wall Street Finally Sees Upside For Sears
The department store has struggled over the last few years, leaving many investors wondering if bankruptcy would be an eventual solution. On Wednesday, the company announced that it will entering the real estate venture, which sent shares skyrocketing.
If this venture is successful, Sears may be able to back a comeback.
Mutual Funds to Watch
Investors interested in SHLD may be interested in the funds listed below. These funds currently have the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| FAIRX | Fairholme | 13.34% |
| FAAFX | Fairholme Allocation | 1.81% |
| VTSMX | Vanguard Small Cap Index | 0.45% |
The Bottom Line
The funds listed above allow investors to gain exposure to SHLD while remaining diversified. Investors interested in SHLD may also be interested in Kohl’s (KSS).
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