The H Partners And Tempur Sealy (TPX) Saga Continues by Stock Pucker
- H Partners is ramping up activist efforts at Tempur Sealy.
- The mattress maker has another activist involved as well.
- Yet it’s still unclear what the activist plan is.
H Partners has been a long-term shareholder of Tempur Sealy, but recently went active after a number of years of underperformance. Back in February, we noted that the valuation is still a bit expensive. And H Partners hasn’t laid out its plans to turn around performance.
But now H Partners has sent another letter to Tempur, requesting access to the company’s records. Basically, it wants to know the top shareholders so it can start working them over in an effort to gain support for its proxy fight.
H Partners wants a board seat and a new CEO put in place, along with the ousting of a couple directors. The endgame is to get a vote of no confidence in the Tempur board members, leading to a CEO replacement. Tempur Sealy has already come out and defended itself, its CEO and its track record. But Chieftain Capital has thrown its support behind H Partners and went active on the stock as well. It owns 5.8% of the company and supports ousting the CEO and replacing the board. Read the full piece here.
Yost Partners was up 0.8% for the first quarter, while the Yost Focused Long Funds lost 5% net. The firm's benchmark, the MSCI World Index, declined by 5.2%. The funds' returns outperformed their benchmark due to their tilt toward value, high exposures to energy and financials and a bias toward quality. In his first-quarter letter Read More
H Partners has 25% of its portfolio invested in TPX