BizJournals Portfolio

From Limelight to Blue Light

Eddie Lampert made his $4.5 billion fortune by investing in companies and turning them around. But the buyout cycle has ended, and the hedge fund manager who has been compared to Warren Buffett is now being forced to change his strategy.

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1984

Lampert graduates with honors from Yale University and is hired by Goldman Sachs, where he works directly under Robert Rubin.

1988

Lampert leaves Goldman Sachs with the intention of starting his own firm. Rubin warns him that leaving would be a bad career move, but he does it anyway.

1988

Through contacts in the financial world, Lampert hooks up with Texas investor Richard Rainwater, who agrees to provide the majority of the $25 million in startup capital to launch ESL Investments, a hedge fund. Over the years, Lampert's client list would come to include the likes of Michael Dell and David Geffen.

1997

Lampert's ESL starts purchasing shares of AutoZone. By 1999, it owns a 15.7 percent interest in the company, and he wins a seat on the board.

2002

Lampert begins buying bonds of bankrupt retailer Kmart. In 2003, he gains a majority interest and is named chairman of the board. He announces that he plans to merge Kmart with another struggling company, Sears.

2003

Lampert is kidnapped by four men, one an ex-Marine, in ESL's parking garage on a Friday night. He is held in a motel bathroom until he persuades his abductors to let him go in exchange for a promised ransom.


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