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Eddie Lampert: Housing Set For Comeback
Hedge fund chief Eddie Lampert says housing is ripe for a turnaround.
The billionaire CEO of the $11.6 billion fund ESL Investments has been buying into home builders, mortgage firms, and a home improvement chains in moves designed to reap the profits of what Lampert sees as the imminent housing comeback.
ESL, which owns a 50 percent stake in Sears Holdings Corp., recently purchased shares of Centex Corp., and KB Home, each stake worth a little more than $10 million.
ESL has also bought positions in CIT Group, a subprime home and commercial lending firm, and PHH Corp., a mortgage and mortgage services company.
Lampert's share of CIT is worth $35.5 million, and PHH is worth $25.2 million.
Home Depot is Lampert's biggest bet on a housing upturn. The fund currently holds shares worth $590 million, reflecting recent purchases of 6 million additional shares of the home improvement chain, bringing his total stake to 22.7 million shares.
