As Sears Continues to Bleed, Hedge Funds Begin to Circle
According to Strategic Resource Group managing director Burt Flickinger, there’s little hope left for Sears. But with the entrance of Cyrus Capital Partners, which rumors say has joined CEO Eddie Lampert’s hedge fund ESL Investments to prepare a takeover of the chain, the question now is who will win and who will lose as the buzzards continue to circle over the failing carcass of the iconic retailer.
Key to the story are credit-default swaps and other arcane investments that hedge funds can wield in ways that might appear to defy common sense or, according some investors involved, even border on manipulation. For many of the players in this drama, whether Sears survives as a going business is beside the point.