Tracking Edward Lampert’s RBS Partners Portfolio - Q4 2016 Update

• Edward Lampert’s 13F portfolio value decreased from $882M to $653M this quarter.
• RBS Partners reduced AutoNation while dropping IBM.
• The largest three individual stock positions are AutoNation, Sears Holdings, and Lands End and they add up to ~87% of the portfolio.

Edward Lampert’s 13F portfolio value decreased ~26% from $882M to $653M this quarter. The portfolio is very concentrated with recent 13F reports showing just ~10 stakes. The top five positions are AutoNation (AN), Sears Holdings (SHLD), Lands’ End (LE), Sears Canada (SRSC), and Sears Hometown & Outlet (SHOS) and they add up to ~96% of the 13F portfolio.

Below is a look at the significant moves this quarter:

International Business Machines (IBM): IBM was a ~6% of the portfolio position. It was established in Q3 & Q4 2015 at prices between $132 and $173. Q2 2016 saw a ~10% trimming at prices between $143 and $155. Last quarter saw another ~40% reduction at prices between $152 and $164 and the disposal this quarter was at prices between $150 and $169. The stock is now at $178.

Gap Inc. (GPS): GPS was a top-five 6.44% of the portfolio stake as of last quarter. It was established in Q2 & Q3 2015 at prices between $28 and $43. There was a ~25% selling last quarter at prices between $18 and $27. The remaining position was almost sold out this quarter at prices between $21.50 and $31. The stock currently trades at $24.27.

Below is a spreadsheet that shows the changes to Edward Lampert's RBS Partners US long portfolio holdings as of Q4 2016. For a look at how the portfolio has progressed, see our previous update:

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