Rehan Jaffer’s H Partners Management filed on November 7th for its 14.5% activist stake in Sealy Corp (ZZ). As mentioned in the 13D filing, H Partners Management changed its previous passive stake into activist, and intended to “engage in discussions with members of the Board of Directors and management of Sealy from time to time.” H Partners Management is Sealy Corp’s large stakeholder and insider. The firm now takes 14.62 million shares in ZZ, unchanged from its previous 13F position. ZZ surged by 10% on Tuesday and is now trading at $1.62.
Six hedge funds invested in ZZ in the second quarter. Despite H Partners Management’s largest positon, David E. Shaw’s D E Shaw had 1.7 million shares, up by 329% from Q1. Andy Redleaf’s Whitebox Advisors had nearly 500 thousand shares, and James Pallotta’s Raptor Capital Management had 342 thousand shares in ZZ.
H Partners Management is an independent Business Management Consultants investment firm founded in 2005 and is based in New York City. The firm had a $754 million portfolio in the second quarter, and mainly invests in the Services sector.
Sealy Corp focuses on manufacturing and marketing a range of bedding products, including mattresses and mattress foundations. Its products are sold under Sealy, Sealy Posturepedic, Stearns & Foster and Bassett brand names. Additionally, the company offers specialty latex and visco-elastic bedding products under Embody, Stearns & Foster, Reflexions, Carrington Chase, and Mirror Form brand names. In 2010, the company discontinued its operations in France, Italy, and Brazil. Sealy Corporation was founded in 1984 and is based in Trinity, North Carolina.