JCP Investment Management, LLC, founded in 2009 and based in Houston, Texas, is an employee-owned hedge fund sponsor. The firm provides portfolio management services to individuals, high-net-worth individuals, and pooled investment vehicles. It manages hedge funds and other funds, investing in exchange-traded equity securities using fundamental and cyclical analysis. JCP employs various strategies, including long- and short-term purchases, trading, short sales, margin transactions, and option writing, combining in-house and external research.
James C. Pappas
James Pappas is the Managing Member and Owner of JCP Investment Management, LLC, which he founded in June 2009. Previously, he worked in Goldman Sachs' Investment Banking and Leveraged Finance Division, advising on leveraged buyouts, recapitalizations, and refinancing. Before that, he was an investment banker at Banc of America Securities, focusing on consumer and retail sectors. Pappas holds a BBA in Information Technology and a Master's in Finance from Texas A&M University.
Letters & Presentations
PANTRY INC 19-Feb-2014 Presentation |
CASELLA WASTE SYSTEMS INC 29-May-2015 Letter |
CASELLA WASTE SYSTEMS INC 10-Sep-2015 Letter |
CASELLA WASTE SYSTEMS INC 10-Sep-2015 Presentation |
CASELLA WASTE SYSTEMS INC 13-Oct-2015 Presentation |
CASELLA WASTE SYSTEMS INC 13-Oct-2015 Presentation |
CASELLA WASTE SYSTEMS INC 19-Oct-2015 Presentation |
CASELLA WASTE SYSTEMS INC 20-Oct-2015 Presentation |
FIESTA RESTAURANT GROUP, INC. 18-Oct-2016 Letter |
FIESTA RESTAURANT GROUP, INC. 23-May-2017 Presentation |
Active 13D Positions
Past Activist
Casella Waste Systems Inc (CWST)
Between April 7, 2015, and November 9, 2015, JCP Partnership (initially 5%) launched an activist campaign, nominating directors, filing proxy materials, launching FixCasella.com, and securing Glass Lewis support for two nominees. The campaign led to governance changes, including adding independent directors, replacing the Lead Director, and setting financial targets. JCP withdrew its nominees on November 4, 2015, after these changes, increased its stake to 5.9% on November 9, and reduced it to 4.98% by July 25, 2016.
Fiesta Restaurant Group, Inc. (FRGI)
From September 19, 2016, to June 7, 2017, JCP Investment Management, Bradley L. Radoff, and Bandera Partners (initially 6.2%) formed a group advocating operational improvements, Board representation, and governance changes to enhance shareholder value. After increasing their stake to 8.8%, they launched a campaign, including proxy filings, press releases, and the website FixFiesta.com, to support their nominees for the 2017 annual meeting. Despite endorsements and active campaigning, proxy advisory firms ISS, Glass Lewis, and Egan-Jones supported incumbent nominees. On June 7, 2017, shareholders re-elected all company nominees, and JCP reduced its stake to 2.95% and terminated its group agreement.
Innovative Food Holdings (IVFH)
On August 15, 2019, JCP Investment Management (10.3%) nominated three candidates for the Board at the 2019 AGM. On January 28, 2020, JCP entered into an agreement with the company, resulting in the appointment of two JCP nominees to the Board.
Tandy Leather Factory Inc. (TLF)
On March 23, 2017, JCP Investment Management disclosed a 7.3% stake, noting that James C. Pappas, its managing member, serves on the Board. The stake was later increased to 8.9% on May 9, 2018, and further to 9.4% on December 6, 2018.
US Geothermal Inc (HTM)
On October 3, 2016, JCP Investment Management (15.1%) disclosed that James C. Pappas, its Managing Member, was elected to the Board on September 30, 2016. On January 24, 2018, the company announced its acquisition by Ormat Technologies for $5.45 per share, with JCP entering a voting agreement to support the merger.
Westwood Holdings Group, Inc (WHG)
On April 29, 2021, JCP Investment Management (10.4%) expressed its intention to engage with management, the Board, and others on operational and strategic matters, including a potential sale of the company. On July 14, 2021, the company rejected an unsolicited $25 per share cash acquisition proposal from Americana Partners, LLC. On January 5, 2022, JCP criticized the Board for rejecting the offer, citing underperformance and calling for a strategic review or sale, noting shares were trading at $16.87, 33% below the rejected offer. On April 20, 2023, JCP (8.8%) demanded to inspect company records after learning the CEO was exploring financing for a potential take-private transaction, opposing any such move at the company’s depressed valuation.
Wheeler Real Estate Investment Trust, Inc (WHLRP)
On June 11, 2018, JCP Investment Management exercised its right to redeem shares due to the company’s failure to maintain required asset coverage, threatening further legal action. On June 28, 2018, they filed a complaint alleging unauthorized changes to share terms and seeking an injunction and redemption of preferred stock. A settlement was reached on February 26, 2020, dismissing the lawsuit. However, on December 9, 2020, JCP increased its stake and hinted at potential legal action for breach of the settlement agreement.
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