Top hedge funder says retail slump is a “forever trend”

Jason Mudrick thinks bricks and mortar stores will continue to struggle

New York /
Apr.April 03, 2017 01:50 PM

Hedge fund manager Jason Mudrick has dire predictions for the country’s retail sector, and he’s betting big on reaping the rewards.

Mudrick, whose Mudrick Capital Management focuses on distressed investments, told Bloomberg that retailers’ problems are here to stay.

“This is a forever trend,” Mudrick said on Bloomberg TV. “When you think about how things are going to look 10 years from now, or 20 years from now, our parents will be dead, our kids will be adults — you think more people are going to be shopping online or less? This is the Amazon effect and it’s here forever.”

Mudrick Capital Management is worth $1.6 billion, according to the publication, and Mudrick Distressed Opportunity Fund gained 38.7 percent last year. The fund is just one of the many poised to profit off a tanking retail sector, which could result in a series of defaults. Mudrick is zeroing-in on securities backed by loans taken out by troubled mall and shopping center operators like Macy’s Inc. and J.C. Penny Co.

In the face of rising store vacancies, New York City retail landlords including SL Green Realty and Jeff Sutton are offering major tenant perks in order to lure tenants.

Joe Sitt’s Thor Equities, which has been grappling with a number of vacancies across its retail portfolio,  handed a $12 million “improvement allowance” to designer Tom Ford when he signed up for a 12,300-square-foot lease at 650 Madison Avenue[Bloomberg]Miriam Hall  


Related Articles

arrow_forward_ios
Seth Weissman, Financing
Urban Standard wants to rescue property owners from high interest rates
Urban Standard wants to rescue property owners from high interest rates
From left: Michael Dell with 25 Water Street, Alex Sapir with 261 Madison Avenue and Marc Holiday with One Madison Avenue (Getty, Edge Funds, Sapir Organization, SL Green)
Office properties (yes, office!) got Manhattan’s biggest December loans
Office properties (yes, office!) got Manhattan’s biggest December loans
Salim Assa with 15 West 55th Street
Troubled Midtown rental saga headed for a foreclosure finale
Troubled Midtown rental saga headed for a foreclosure finale
Atlas Hospitality Brokerage president Alan Reay (Atlas Hospitality Brokerage)
Listen: Inside the looming distress across the hotel market
Listen: Inside the looming distress across the hotel market
Businessman arguing with buildings
The bickering bros: Jemals escalate battle over portfolio
The bickering bros: Jemals escalate battle over portfolio
Vornado Realty Trust chairman Steve Roth and 401 Seventh Avenue (Getty, LoopNet, Vornado Realty Trust)
Vornado eyeing NYC’s casino sweepstakes
Vornado eyeing NYC’s casino sweepstakes
A photo illustration of The Artisan Hotel at 1501 W Sahara Ave in Las Vegas (Getty, LoopNet)
Las Vegas to get its first cannabis-friendly hotel
Las Vegas to get its first cannabis-friendly hotel
A photo illustration of Cineworld's CEO Mooky “Moshe” Greidinger (Getty)
Regal Cinemas to close 39 U.S. theaters following bankruptcy
Regal Cinemas to close 39 U.S. theaters following bankruptcy
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...