Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Remy International Inc (REMY): Rehan Jaffer’s H Partners Management Goes Activist With 8.75% Stake

Rehan Jaffer’s H Partners Management disclosed today that its stake in Remy International Inc (NASDAQ:REMY) now has an activist nature. According to the Schedule 13D form filed with the SEC, the fund owns more than 2.8 million shares of Common Stock, which account for 8.75% of the company’s shares outstanding as of September 9, 2014.

H Partners Management is an independent investment firm founded by Rehan Jaffer in 2005 and based in New York City; it manages more than $1 billion in assets. Jaffer is an activist value investor that acquired his taste –and eye- for activist investing while working at Dan Loeb’s Third Point. In fact, Mr. Loeb himself once said: Jaffer “is super-hungry. He’s got a good nose. He’s very intelligent. So he’s got a great combination of having a high IQ, really strong financial analytics, a great nose for value, and great trader sense” (Hedge Hunters).


Remy International Inc (NASDAQ:REMY) is  $602.15 million market cap global vehicular parts designer, manufacturer, remanufacturer, marketer and distributor of aftermarket and original equipment electrical components for automobiles, light trucks, heavy-duty trucks and other vehicles. After losing 19.5% year-to-date, its stock trades at barely 12.8 times the company’s earnings, at a 20% discount to its peers’ average valuation. In addition, it boasts a 2.12% dividend yield.

Despite a 6% reduction in its exposure to Remy International Inc (NASDAQ:REMY) over the second quarter of 2014, H Partners Management still seems quite bullish on the company, remaining as the largest institutional shareholder, amongst those we track, by a wide margin. Second in line is Jeffrey Bronchick’s Cove Street Capital, with more than half a million shares, worth over $12 million by the end of the second quarter. Jeffrey Moskowitz’s Harvey Partners also seems pretty confident about this auto-parts company’s future. The fund started a position with 232,500 shares over the second quarter of the year.

But you might wonder, why follow Mr. Jaffer’s pick? I should highlight that H Partners Management’s equity portfolio, worth more than $1.2 billion, only comprises five stocks. This means that the team has went though a lot of work and research to select them. Although all of the stocks in its portfolio are down year-to-date, you should not discard a turnaround –which is what the fund is betting on. In fact, analysts expect Remy International Inc (NASDAQ:REMY) to deliver average annual EPS growth rates around 14% over the next five years, outperforming both its industry peers and the broader market.

Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!