William Ackman has bet the ranch that he would be able to overhaul the financial condition of retail giant JC Penney. As the drama unfolds, his US$12 billion investment may be his biggest blunder to date.

Last Monday, JC Penney's board of directors had dismissed Ackman's handpicked executive Ron Johnson tasked to remake the retailer. In Johnson's stead, the board asked Mike Ullman back. Ullman was previously criticized by Ackman for his management of the iconic brand retailer.

As Ackman sits on the board of JC Penney, clearly his influence is diminishing while remaining as the largest shareholder of thecompany. The usually affable Ackman has still to comment on the CEO merry go round even after requests have been forwarded to him.

According to some industry analysts, the only way that Ackman can seek any return on his investment is to seek out an investor that would help JC Penney become private. This would probably provide Pershing Square some funds as return on the US$500 million investment in the company.