Largest Institutional Holder Cuts Stake in Barnes & Noble (BKS, WMT, AMZN)

Five years ago, shares of Barnes & Noble (NYSE: BKS) were trading at $38.56. Today, they are trading at $9.95. Being an investor in Barnes & Noble has not been pleasant lately, as the invention of E-Books has significantly cut into the profits of the brick-and-mortar bookstore. Shareholders have, as a result, seen their investment decimated.Earlier today, Aletheia Research & Management announced that it has cut its stake in BKS from 12.73% to 10.59%. Despite the cut, Aletheia is still Barnes & Noble's largest institutional shareholder by far. Dimension Fund Advisors is the second largest institutional shareholder with a 3.56% stake.Aletheia has been steadily reducing its exposure to Barnes and Noble over the past few years. In 2010, the company held as much as 15.1% of BKS shares. The buying began in 2009, as rumors of a possible hostile takeover emerged. To combat this, Barnes & Noble enacted an anti-takeover “poison pill.”The move should come as no surprise to anyone, as the business model surrounding brick-and-mortar bookstores is increasingly becoming a failing proposition. With the continued success of discount competitors such as Amazon.com (NASDAQ: AMZN) and Wal-Mart (NYSE: WMT), as well as the rise of the E-book, Barnes and Noble is finding it harder and harder to find profits. Barnes & Noble's survival rests squarely in the hands of the consumer. As it stands, the company oftentimes charges 30% more than its competitors for the same products. Whether or not patrons will continue to pay these prices to enjoy the nostalgic feeling of a physical book store is anyone's guess. Time will tell.An effort was made to contact Aletheia Research and Management to discuss the move, but the company declined comment.