(Reuters) - Hedge fund Hayman Capital Management LP sold all its shares in J.C. Penney
Penney's shares fell as much as 10 percent to $8.65, their biggest drop since September 27, on the New York Stock Exchange.
Dallas-based Hayman Capital, known for earning millions by betting against the overheated subprime market before the financial crisis, declined to comment to Reuters.
Hayman disclosed a 5.2 percent stake in Penney in September, but reported in November that it had reduced that to about 1.87 percent. (http://link.reuters.com/qaz25v)
J.C. Penney said on Tuesday comparable-store sales rose for the second straight month in November as its aggressive discounts and the return of some in-house brands brought back shoppers to its stores.
(Reporting by Aditi Shrivastava and Sam Forgione; Editing by Don Sebastian)