Edward Lampert’s ESL Investments Sells Shares of AutoNation Inc. (AN)

ESL Investments, managed by Edward Lampert, has reduced its exposure to AutoNation Inc. (NYSE:AN), a new filing with the U.S. Securities and Exchange Commission showed. The fund currently holds around 26.20 million shares of AutoNation Inc. (NYSE:AN), down from 27.69 million shares held previously. The new position is equivalent to 21.9% of common stock outstanding.

AutoNation Inc. (NYSE:AN) is an automotive retailer, owning and operating 270 new vehicle franchises, which sell 33 new vehicle brands across 15 states. The company has a market cap of $6.8 billion. The company announced reported retail sales of 30,275 new vehicles in May 2014, representing an increase of 15% as compared to May 2013, according to a news release.

The company posted first-quarter 2014 adjusted net income from continuing operations of $91 million, or $0.75 per share, compared to net income from continuing operations of $83 million, or $0.68 per share, for the same period in the prior year. Revenue was $4.4 billion in the first quarter, compared to $4.1 billion in the year-ago period, showing an increase of 7% driven by stronger performance in all business sectors – new vehicles, used vehicles, parts and service, and finance and insurance.

Aside from ESL Investments, other significant shareholders of the company include Murray Stahl’s Horizon Asset Management and Stephen Mandel’s Lone Pine Capital, owing 4.97 million shares and 3.99 million shares, respectively.

Edward Lampert is chairman of Sears Holdings Corp (NASDAQ:SHLD) and founder, chairman and CEO of ESL Investments. According to Forbes, Lampert is ranked 316th on the list of the world’s richest people, with an estimated net worth of $3 billion. The value of ESL Investments’ equity portfolio was about $2.2 billion as of the end of the first quarter of 2014, according to the fund’s latest 13F.

In April, his fund acquired around 173,600 shares of Sears Hometown and Outlet Stores Inc (NASDAQ:SHOS), holding directly around 5.53 million shares of the company.

Disclosure: none

Recommended Reading:

Barry Rosenstein’s Jana Partners Reduces Exposure To Oil States International Inc. (OIS)

Carl Icahn Acquires Over 9% Stake in Family Dollar Stores Inc. (FDO); Seeking Dialogue To Enhance Value

Hedge Fund Highlights: Warren Buffett, Ray Dalio & Chris Hohn