H Partners & Chieftain Capital Both File 13D's on Tempur Sealy ~ market folly

Wednesday, February 25, 2015

H Partners & Chieftain Capital Both File 13D's on Tempur Sealy

Two investment firms have recently filed 13D's with the SEC regarding shares of Tempur Sealy (TPX).

H Partners Sends Letter to Tempur Sealy's Board 

Rehan Jaffer's hedge fund H Partners currently owns 9.97% of the company with 6,075,000 shares, according to their latest 13D filed with the SEC.  This is the same amount of shares they owned as of the end of 2014 as well.

H Partners runs a highly concentrated portfolio focused on long-term investments.  Prior to founding H Partners, Jaffer worked at Third Point.

The hedge fund also sent a letter to the Tempur Sealy, calling for a new CEO, among other things.  They highlight the company's underperformance and their entire letter is embedded below:

Chieftain Capital Echoes Support

Second, John Shapiro's investment firm Chieftain Capital has filed a 13D on shares of the company as well.  In it, they disclose they own 5.78% of the company with over 3.51 million shares.

They've trimmed their Tempur Sealy position size by around 10% since the end of 2014.  The filing was made due to activity on February 19th and they were selling some shares around $55. 

Chieftain has owned TPX since 2010 and their 13D echoes support for H Partners' proposals for new management and would like to see H Partners get a seat on the board as well.

Per Google Finance, Tempur Sealy is "a bedding provider. The Company develops, manufactures, markets, and distributes bedding products, which it sells globally. The Company operates in three segments: Tempur North America, Tempur International and Sealy. The Company’s brand portfolio includes TEMPUR, Tempur-Pedic, Sealy, Sealy Posturepedic, Optimum, and Stearns & Foster."

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