Well Played! Kyle Bass Made A Perfectly Timed Trade In A Mattress Company

Kyle Bass

Photo: Image courtesy of Hayman Capital

Foam mattress maker Tempur-Pedic announced today that it is acquiring Sealy for $1.3 billion.Shares of Sealy were last trading up 4.9%. Shares of Tempur-Pedic were last trading up more than 13%. 

Earlier this month, Texan hedge fund manager Kyle Bass, the founder of Hayman Capital, snapped up a big stake in Sealy, an SEC 13G filing shows

Hayman Capital disclosed that it had purchased 5,644,245 shares of Sealy, or a 5.9% stake, the filing shows.

According to Guru Focus, Hayman bought the stock at the average price of $2.04.

Here’s a rundown of some other hedge funds with big stakes in Sealy, according to data compiled by Bloomberg citing 13F regulatory filings for the second quarter ended 6/30/2012. 

  • H Partners (~17.28 million shares or a 16.63% stake)
  • Altai Capital Management (~5.64 million shares or a 5.43% stake)
  • Lonestar Capital (713,368 shares or 0.69%)
  • Whitebox Advisors (499,565 shares or 0.48% stake)
  • Renaissance Technologies (423,900 shares or 0.41% stake)

Bass is known for famously shorting the subprime housing market.  Learn more about him here >

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