On Biglari, Breeden, and Applebee’s
Regular readers of this blog know that Mr. Biglari is both Chairman and CEO of Western Sizzlin (WSZL), a publicly traded holding company, and The Lion Fund, an investment partnership (or “hedge fund”). While at Western Sizzlin, he made a concentrated bet on Friendly’s (FRN) that paid off well. That seems to be his modus operandi – bet big and be heard.
This approach may sound similar to the one favored by many other “activist” investors – and perhaps it is, but based on what Biglari has done in his brief time at Western Sizzlin and some comments he made, I think it’s likely that (at Western Sizzlin) he will favor a more concentrated (i.e., less diversified) approach than almost all other activist investors.
That makes each mention of one of his investments a little more interesting. Generally, the more concentrated an investor’s portfolio, the more promise each position has as a source of good ideas for other investors.
Enough background – here’s the post from Streetinsider.com 13D Tracker.