This Asset Manager Has a Nearly $200 Million Bet on Macy's Stock — What Should Long-Term Investors Know?

London-based RWC Asset Management disclosed the purchase of Macy's (NYSE:M) shares in an SEC filing on Monday, adding 255,473 shares worth an estimated $3.6 million.

What Happened

According to a filing with the Securities and Exchange Commission released Monday, RWC Asset Management increased its position in Macy's during the third quarter. The fund purchased 255,473 additional shares, bringing its total position to 10.9 million shares. The estimated value of the transaction, based on the average closing price during the quarter, was $3.6 million.

What Else to Know

The buy brings the Macy's stake to 9.5% of RWC Asset Management's reportable U.S. equity assets under management.

Top five holdings after the filing:

• NYSE:M: $195.5 million (9.45% of AUM)
• NASDAQ:EXC: $172.9 million (8.8% of AUM)
• NYSE:HPQ: $159.9 million (8.1% of AUM)
• NYSE:NEE: $68.5 million (3.5% of AUM)
• NYSE:D: $65.2 million (3.3% of AUM)

As of Monday, Macy's shares were priced at $19.38, up 26% over the past year and well outperforming the S&P 500's 18% gain over the same period.

Company Overview

Company Snapshot

• Macy's offers a broad range of merchandise, including apparel, accessories, cosmetics, home furnishings, and beauty products across multiple retail brands and digital platforms.
• The big-box retailer operates an omni-channel retail model, generating revenue through in-store and online sales, supported by a portfolio of department stores and specialty shops.
• It targets a wide consumer base, with primary customers spanning men, women, and children seeking branded and private-label goods in the United States and select international markets.

Macy's is a leading U.S. department store operator with a national footprint and a diversified brand portfolio. The company leverages both physical locations and digital channels to drive sales and customer engagement.

Foolish Take

RWC Asset Management’s increased stake in Macy’s signals confidence in the department store’s turnaround strategy amid stronger-than-expected earnings and improved guidance. The London-based firm's roughly $3.6 million purchase brought its total holdings to 10.9 million shares worth $195.5 million, making Macy’s its largest U.S. equity position, followed by Exelon and HP Inc.

The timing of the buy coincided with Macy’s second-quarter results, which showed its best comparable sales growth in 12 quarters and prompted the retailer to raise its full-year sales and earnings outlook. Gains were led by the Reimagine 125 stores, Bloomingdale’s, and Bluemercury. The company also returned $100 million to shareholders through dividends and buybacks.

For long-term investors, RWC’s move highlights a contrarian but increasingly relevant bet on value-oriented retail. Macy’s balance sheet has strengthened—long-term debt fell by roughly $340 million, and inventories remain lean. While retail volatility persists (Macy's is, after all, still down more than 70% from highs in 2015), disciplined cost control and execution position Macy’s as a potentially more resilient player in the sector’s ongoing recovery.

Glossary

AUM (Assets Under Management): The total market value of assets a fund or investment manager oversees on behalf of clients.
Omni-channel: A retail strategy integrating physical stores and digital platforms to provide a seamless customer experience.
Dividend Yield: Annual dividend payments divided by the stock's current price, expressed as a percentage.
Portfolio: A collection of investments held by an individual or institution.
Stake: The ownership interest or amount of shares held in a company by an investor or fund.
Quarter: A three-month period used by companies for financial reporting and performance measurement.
Outperforming: Achieving better returns than a specific benchmark or index over a given period.
TTM: The 12-month period ending with the most recent quarterly report.
Filing: An official document submitted to a regulatory authority, often containing financial or operational information.
Holding: A security or asset owned by an investor or fund.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends HP and NextEra Energy. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.