Mattress Firm Holding Corp (MFRM), Allergan, Inc. (AGN), Actavis plc (ACT): 40 North Management Loves These Stocks

40 North Management, managed by David S. Winter and David J. Millstone, recently filed its 13F with the U.S. Securities and Exchange Commission. The fund revealed 159 positions as held at the end of the second quarter of 2014. The value of the holdings amounts to $1.6 billion. Over the quarter, 40 North Management invested in finance, healthcare and consumers stocks. The fund acquired more than 70 new stocks, while sold out holdings in over 80 stocks. Top three stocks of the fund for the second quarter include Mattress Firm Holding Corp (NASDAQ:MFRM), Allergan, Inc. (NYSE:AGN) and Actavis plc (NYSE:ACT).

Mattress Firm Holding Corp

Mattress Firm Holding Corp (NASDAQ:MFRM) is the top position, where 40 North Management’s stake remained unchanged over the quarter. The fund holds 2.97 million shares of the company, with a reported value of $141.7 million. Mattress Firm Holding Corp (NASDAQ:MFRM) is a specialty retailer of mattresses and related products and accessories in the United States, with a market cap of $2.2 billion. Last week, the company reported that it agreed to acquire all of the outstanding equity interests in The Sleep Train Inc., a bedding specialty retailer, for an aggregate purchase price of $425 million. The acquisition is expected to close by the end of the fourth fiscal quarter of 2014.

Stockbridge Partners, led by Sharlyn C. Heslam, disclosed ownership of 2.78 million shares of Mattress Firm Holding Corp (NASDAQ:MFRM). Another investor, Alan Fournier’s Pennant Capital Management holds 1.36 million shares of the company.

40 North Management was bullish on Allergan, Inc. (NYSE:AGN), in which it boosted its position by more than 50% to 429,508 shares, worth $72.7 million. At the end of the first quarter, the fund held 277,773 shares of the company. Allergan, Inc. (NYSE:AGN) is planning to have a special shareholders’ meeting on December 18. This comes along with the news that another 2.8%, making a total of 33.8%, of the company’s shareholders have sent their consent regarding the assembly.

At the end of last month, Bill Ackman’s Pershing Square, in a new filing the SEC, disclosed its and Valeant Pharmaceuticals Intl Inc (NYSE:VRX) response to a recent announcement by Allergan, Inc. (NYSE:AGN) regarding special meeting of stockholders and its court request to block Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Pershing Square from voting shares acquired in violation of insider trading laws.

In Actavis plc (NYSE:ACT), 40 North Management disclosed owning 255,263 shares, with a reported value of $56.9 million. The stake represents over 25% increase from 197,353 shares the fund reported previously. Actavis plc (NYSE:ACT) is a pharmaceutical company based in Dublin, Ireland. It has market cap of $61.1 billion.

New-York based 40 North Management was founded in 2009 by David J. Millstone and David S. Winter. The firm invests across the public and private markets, including real estate through Winter Properties, which is a privately-held, vertically integrated real estate investment management business focused on value creation in the Tri-State Area.

Disclosure: none