Tempur Sealy International Inc (TPX): H Partners’ Activist Campaign Takes New Turn; Rehan Jaffer’s Other successful Stories

On the first spot in H Partners’ equity portfolio is Six Flags Entertainment Corp (NYSE:SIX), which is another activist target of the fund. During the financial crisis, H Partners initiated a stake in the bankrupt company. Mr. Jaffer and two of his partners, Usman Nabi and Arik Ruchim, played a major role in Six Flags Entertainment Corp (NYSE:SIX)’s exit from Chapter 11 by participating in a debt-for-equity swap that landed H Partners with a 25% stake in the company. As of the end of 2014, H Partners held 16.42 million shares of the company, valued at $708.50 million, equal to 56% of the total equity portfolio.  Meanwhile, the stock of Six Flags Entertainment Corp (NYSE:SIX) surged by over 400% in the last five years. H Partners is the largest shareholder of Six Flags among the funds that we track, followed by Pasco Alfaro and Richard Tumure’s Miura Global Management with 1.0 million shares, held as of the end of 2014.

W. R. Grace & Co (NYSE:GRA) is a succesful investment made by H Partners. At the end of 2014, the investor held 1.05 million shares worth $100.23 million. The fund first disclosed holding shares of W. R. Grace & Co (NYSE:GRA) in its 13F filing for the last quarter of 2008, the position containing 1.2 million shares with an aggregate value of $7.16 million, which rougly translates into $6.00 per share. The fund obtained an impressive return over the years, taking into account that W. R. Grace & Co (NYSE:GRA) currently trades at $96 per share. In its latest 13F filing, David Cohen and Harold Levy’s Iridian Asset Management, reported a $509.98 million stake in the specialty chemicals company, which contains 5.35 million shares.

Disclosure: none