Hayman Capital Management had accumulated a 5.2% JC Penney. This was according to J. Kyle Bass, the outspoken Texas hedge fund manager.

Bass made USD500 million through the housing market during the financial crisis. He had joined an investment fund established by George Soros and Perry Corp. This was through owning some of the largest stakes in the struggling retailer.

Bass said that JC Penney possessed the requisite tools to execute a class retail turnaround. He also highlighted that the company has strong brand recognition, well-positioned real estate and efficient team players.

On Tuesday morning, Hayman Capital's stake was disclosed in a regulatory filing with the US Securities and Exchange Commission. The report came after weeks that rival hedge fund manager William Ackman resigned from the JC Penney. Ackman also moved to sell 18% of his stake in the company. The stake sale had Ackman incurred around USD500 million losses.