Activist Rehan Jaffer Flying High With His Small-Cap Picks Like Six Flags Entertainment Corp (SIX)

Jaffer’s next small-cap pick, Tempur Sealy International Inc (NYSE:TPX) is also H Partners’ second-largest holding, consisting of 6.08 million shares valued at $350.77 million. The holding represented 26.14% of the fund’s portfolio value and accounts for nearly 10% of Tempur Sealy’s outstanding shares. Just last month, H Partners was able to stir up change in the ranks of Tempur Sealy International Inc (NYSE:TPX)’s upper management without a traditional proxy fight, since the fund missed the deadline to nominate directors. The shareholders of the company came through for the fund and ousted three directors including CEO Mark Sarvary, while Usman Nabi of H Partners has landed himself a seat on Tempur Sealy International Inc (NYSE:TPX)’s board. The hunt for the new CEO is on while COO Tim Yaggi has temporarily taken that post. Among the billionaires that we track, five have investments in Tempur Sealy International Inc (NYSE:TPX), with a total value of $169.18 million. Billionaire Rob Citrone is one of them as his fund Discovery Capital Management holds 1.11 million shares of the company valued at $64.05 million.

The third spot belongs to Boyd Gaming Corporation (NYSE:BYD), with Jaffer holding 4.21 million shares valued at $59.84 million, which represents 4.46% of H Partners’ portfolio value. The $1.64 billion gaming company’s stock has appreciated by a hefty 16.51% year-to-date. The gains look even more impressive when compared with the resorts & casinos industry’s average loss of over 10% during the same period. Credit Suisse upgraded Boyd Gaming Corporation (NYSE:BYD) to ‘Outperform’ from ‘Neutral’ this week and increased the price target to $18 from $17, indicating potential upside of over 22%. Paul Reeder and Edward Shapiro’s PAR Capital Management is the largest stockholder of Boyd Gaming Corporation (NYSE:BYD) within our database, owning 7.19 million shares valued at $102.21 million.

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