Investment idea generation.


H Partners Books A Win At Tempur Sealy ($TPX)

Last week, Tempur Sealy revealed that shareholders had voted to oust three board members. It accepted their resignation and essentially forced out the CEO. It’s really rather unprecedented, where H Partners wasn’t even able to run a conventional proxy battle - having missed the nomination deadline.

The lesson here; when you’ve got nearly 30% of your fund in the stock, don’t underestimate the power of the activist. By any means necessary type of deal. This includes a 100-page presentation. Long-term, I’m still not sure how the stock plays out - the industry is becoming commoditized. The turnaround plan is still uncertain, besides a transition in marketing spend. The stock is up 30% or so in the last couple months; the easy money has been made.