Gurus Who Sold and Who Kept CIT Group Inc.

Gurus Focus
October 19, 2009

(GuruFocus, October 19, 2009) Invest Guru Carl Icahn offers $6 billion to the troubled company CIT Group Inc. to replace the company’s tender offer to bond holders. He said the offer can save the company $144 million. The shareholder right advocator thinks the company’s own plan favor the larger bond holders and disadvantages the small guys.

CIT Group stock is trading high today. With a bankruptcy looming, the stock could be worthless, but Icahn’s message injected a dose of confidence in the company and investor is bidding the stock more than 20% higher.

Gurus Sold Out CIT

David Williams owns 3,000,000 shares as of June 30, 2009, a decrease of 40% of from the previous quarter. In the quarter ended on September 30, 2009, Williams sold out his position.

Earlier on, as the story unfolding, Martin Whitman sold out his holdings in the quarter that ended on 07/31/2009. HOTCHKIS & WILEY sold out his holdings in the quarter that ended on 06/30/2009. Dodge & Cox sold out his holdings in the quarter that ended on 06/30/2009. Richard Perry sold out his holdings in the quarter that ended on 06/30/2009.

Gurus Still Holding CIT

As of June 30, 2009, these were still Investment Gurus who held the stock:

1 Guru Increased Positions in CIT: David Dreman owns 55,445 shares , an increase of 78.02% from the previous quarter. This position accounts for less than 0.01% of the $3.12 billion portfolio of Dreman Value Management.

2 Gurus Kept Positions in CIT Unchanged or Slightly Adjusted: Charles Brandes owns 23,919,838 shares , which accounts for 0.28% of the $18.33 billion portfolio of Brandes Investment. Edward Lampert owns 15,406,937 shares , which accounts for 0.34% of the $9.71 billion portfolio of ESL Investments.

They may or may not have sold their positions since then, we will know for sure when they report their holdings later on this quarter.