As soon as Bill Ackman files a 13D, other hedge funds flock into the same stock to take advantage of the situation. In this regard, John Petry is probably the Rodney Dangerfield of activist investing. Petry’s Sessa Capital is one of the best performing hedge funds in our list, meaning investors would have beat the heck out of the index funds if they had imitated Sessa Capital’s 13F portfolio. Sessa Capital’s actual investors, billionaire David Einhorn is one of them, enjoyed a 34.1% return in 2016.
John Petry is like Rodney Dangerfield because only one of the 140 biggest activist hedge funds has a position in Ashford Hospitality Prime Inc. (NYSE:AHP). AHP shares appreciated about 30% over the last 12 months, but didn’t move much since Sessa Capital disclosed its activist stake in September 2015. Today’s filing shows that Sessa Capital will get two board seats. The other details of Sessa’s agreement with Ashford Hospitality Prime Inc. (NYSE:AHP) can be seen below.
Ownership Summary Table
Name | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | Aggregate Amount Owned Power | Percent of Class |
---|---|---|---|---|---|---|
Sessa Capital (Master) | 2,210,427 | 2,210,427 | 2,210,427 | 8.5% | ||
Sessa Capital GP | 2,210,427 | 2,210,427 | 2,210,427 | 8.5% | ||
Sessa Capital IM | 2,210,427 | 2,210,427 | 2,210,427 | 8.5% | ||
Sessa Capital IM GP | 2,210,427 | 2,210,427 | 2,210,427 | 8.5% | ||
John Petry | 2,210,427 | 2,210,427 | 2,210,427 | 8.5% |
Page 1 of 10 – SEC Filing
(Name, Address and Telephone Number of Person
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Page 2 of 10 – SEC Filing
1 | NAME OF REPORTING PERSON Sessa Capital (Master), L.P. | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) x | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS OO | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 2,210,427 | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 2,210,427 | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,210,427 | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 8.5% | ||
14 | TYPE OF REPORTING PERSON PN |
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Page 3 of 10 – SEC Filing
1 | NAME OF REPORTING PERSON Sessa Capital GP, LLC | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) x | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS AF | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 2,210,427 | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 2,210,427 | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,210,427 | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 8.5% | ||
14 | TYPE OF REPORTING PERSON OO |
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Page 4 of 10 – SEC Filing
1 | NAME OF REPORTING PERSON Sessa Capital IM, L.P. | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) x | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS AF | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION Delaware | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 2,210,427 | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 2,210,427 | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,210,427 | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 8.5% | ||
14 | TYPE OF REPORTING PERSON IA |
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Page 5 of 10 – SEC Filing
1 | NAME OF REPORTING PERSON Sessa Capital IM GP, LLC | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) x | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS AF | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION Delaware | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 2,210,427 | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 2,210,427 | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,210,427 | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 8.5% | ||
14 | TYPE OF REPORTING PERSON OO |
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Page 6 of 10 – SEC Filing
1 | NAME OF REPORTING PERSON John Petry | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) x | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS AF | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION United States | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 2,210,427 | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 2,210,427 | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,210,427 | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 8.5% | ||
14 | TYPE OF REPORTING PERSON IN |
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Page 7 of 10 – SEC Filing
Item 4. | Purpose of Transaction. |
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Page 8 of 10 – SEC Filing
Item 5. | Interest in Securities of the Issuer. |
| Item 5(a) is hereby amended and restated to read as follows: |
Item 6. | Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer. |
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Page 9 of 10 – SEC Filing
Item 7. | Material to be Filed as Exhibits. |
| Item 7 is hereby amended to add the following exhibit: |
| 99.1 | Agreement by and among Sessa Capital (Master), L.P., Sessa Capital GP, LLC, Sessa Capital IM, L.P., Sessa Capital IM GP, LLC, John E. Petry, Ashford Hospitality Prime, Inc., Ashford Inc. and Ashford Hospitality Trust, Inc., dated February 16, 2017. |
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Page 10 of 10 – SEC Filing
Sessa Capital (Master), L.P. | |||
By: | Sessa Capital GP, LLC General Partner | ||
By: | /s/ John E. Petry | ||
Name: | John E. Petry | ||
Title: | Manager |
Sessa Capital IM, L.P. | |||
By: | Sessa Capital IM GP, LLC General Partner | ||
By: | /s/ John E. Petry | ||
Name: | John E. Petry | ||
Title: | Manager |
Sessa Capital GP, LLC | |||
By: | /s/ John E. Petry | ||
Name: | John E. Petry | ||
Title: | Manager |
Sessa Capital IM GP, LLC | |||
By: | /s/ John E. Petry | ||
Name: | John E. Petry | ||
Title: | Manager |
/s/ John E. Petry | |
JOHN E. PETRY |