Lampert raises stake in AutoNation to 33 percent

DETROIT, Feb 13 (Reuters) - Hedge fund manager and billionaire investor Edward Lampert has bought another $20 million in shares of AutoNation Inc (AN.N: Quote, Profile, Research), taking his stake in the top U.S. auto retailer to almost 33 percent.

Lampert, who is also chairman of Sears Holdings Corp (SHLD.O: Quote, Profile, Research), bought almost 1.3 million shares of AutoNation in transactions on Monday and Tuesday, according to a filing with the Securities and Exchange Commission on Wednesday.

The purchases took Lampert's stake in Fort Lauderdale, Florida-based AutoNation to about 59.93 million shares.

Lampert, who has been managing his hedge fund ESL Investments since 1988, has built a reputation for investors by finding undervalued stocks.

Shares of AutoNation, which is the largest automobile dealership in the United States, have rallied by almost 30 percent since late January, but remain almost 31 percent from their recent high last January.

The stock's decline has mirrored a slump in U.S. auto sales analysts and industry executives have attributed to a slowing U.S. economy, tighter credit markets and a slumping housing market.

An AutoNation spokesman could not be reached immediately for comment. The company owns and operates dealerships for a range of U.S., Asian and European automobile brands. (Reporting by Kevin Krolicki; editing by Leslie Gevirtz)