Phillip Goldstein, Andrew Dakos And Steven Samuels’ Bulldog Investors disclosed an increase in its stake in LMP Real Estate Income Fund Inc. (NYSE:RIT) this week. According to the 13D Form filed with the U.S. Securities and Exchange Commission, the investment firm now holds a position of 831,100 shares, representing 7.26% of the company’s outstanding stock. Another event took place this week, which saw Rehan Jaffer’s H Partners Management file a 13D Form, although it did not alter its holding in Remy International Inc (NASDAQ:REMY). Although the fund continues to own around 2.8 million common shares – a stake it acquired in September of 2014 – H Partners has now entered into a Support Agreement with the company. Thanks to this agreement, Remy International has granted H Partners non-voting observer rights regarding all meetings held by its board of directors.
Bulldog Investors was founded by Phillip Goldstein and Steven Samuels in 1992 and is currently headquartered in Saddle Brook, New Jersey. The hedge fund employs a value-driven investment strategy and has demonstrated a clear preference for taking on an activist approach towards its holdings. In addition to boasting an equity portfolio that is valued at around $233 million, the firm has launched and managed a number of mutual funds, and regularly invests in closed-end funds. Furthermore, Bulldog Investors was ranked amongst Activist Insight’s “Activist Top Ten” in 2014. Around 73% of the hedge fund’s equity portfolio contains stocks belonging to the finance industry.
Bulldog Investors entered a position in LMP Real Estate Income Fund Inc. (NYSE:RIT) during the third quarter and became its largest institutional investor, with a stake of 492,700 shares. The hedge fund clearly remains bullish, as suggested by its latest purchase of shares. This comes as little surprise, considering the stock gained 25% last year and has grown by 7% since the beginning of 2015. In addition to Bulldog Investors, William Michaelcheck’s Mariner Investment Group is also betting on this fund. The alternative asset manager increased its holdings by 133% during the third quarter and now owns 363,000 shares.
LMP Real Estate Income Fund Inc. (NYSE:RIT) is closed-end balanced mutual fund, which invests primarily in income-producing equities. The fund is managed by Legg Mason Partners Fund Advisors and its holdings comprise mainly securities of real estate investment trusts.
H Partners Management was founded by the activist value investor Rehan Jaffer in 2005. The hedge fund focuses on distressed instruments, equity securities, and company obligations and is currently headquartered in New York City. The firm’s founder and manager acquired a preference for activist investments during his time at Dan Loeb’s Third Point, where he was employed until joining River Run Partners in 2004.
H Partners Management employs a fundamental, bottom-up approach to select its investments. The hedge fund’s equity portfolio has a market value of around $1 billion and is made up almost exclusively of stocks of companies operating in the consumer discretionary industry. Furthermore, the investment firm only holds five equities, with its position in Six Flags Entertainment Corp (NYSE:SIX) accounting for more than 51% of its equity portfolio. H Partners also has a significant stake in Tempur Sealy International Inc (NYSE:TPX), holding the spot as the company’s largest institutional investor.
In mid-October H Partners Management disclosed it had gone activist on Remy International Inc (NASDAQ:REMY). While the hedge fund’s holding – which amounts to 8.75% of the company’s outstanding stock – remains unaltered, it has recently disclosed entering into a support agreement. According to the terms set forth in the agreement, H Partners will be allowed to attend all meeting held by Remy International’s Board of Directors and participate as a non-voting observer. Furthermore, the company’s management is expected to advance the nomination of the hedge fund’s nominee for the election to the Board, which is set to take place at the 2015 annual meeting.
Remy International Inc (NASDAQ:REMY) designs and manufactures rotating electrical components for automobiles and other vehicles. In addition to H Partners Management, the company is also backed by Jeffrey Bronchick’s Cove Street Capital, which owns 690,344 shares of common stock.
Disclosure: none.
