5 Things You Can Buy with Your Sears Shares

Freshly minted owners might be wondering what to do with their shiny new assets

Author:: Edward Hardy
Publish date:: Oct 18, 2017 11:31 AM EDT

Fairholme Capital Management LLC investment chief Bruce Berkowitz has stepped down from the board of Sears Holdings Corp. ( (SHLD) ) . He has also decided to distribute some of the 28,012,172 Sears shares Fairholme holds to the investors of soon-to-be-dissolved Fairholme Partnership hedge fund.

While all of Fairholme's vast array of funds, which includes Berkowitz's holdings and those of his family plus many hedge funds similar to Fairholme Partnership, hold over 28 million shares of the ailing retailer, only about one million shares of Sears will be leaving the Fairholme umbrella of funds in this move.

In a Securities & Exchange (SEC) filing from Friday, Oct. 13, Fairholme said it would return sharesto the dissolved fund's investors. While most of those shares were redistributed to other stock and mutual funds within Fairholme, 897,514 shares of Sears are "leaving the Fairholme tent," a Fairholme spokesperson told TheStreet.

While it's worth noting that "Fairholme has not sold a share of Sears in 2017," according to the spokesperson, Fairholme no longer has beneficiary ownership over those 897,514 shares of Sears liquidated from Fairholme Partnership.

With almost one million Sears shares soon in the hands of investors who put their money behind Berkowitz's shuttered hedge fund, freshly minted owners might be wondering what to do with their shiny new assets. TheStreet came up with a few suggestions besides holding onto the stock.

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