Dinakar Singh, founder of $4 billion hedge fund TPG-Axon Capital Management LP, said SandRidge Energy Inc. (SD:US)’s management is not trusted by investors.
“There is tremendous value” in SandRidge, Singh said today in an interview on Bloomberg Television’s “Market Makers” program with Stephanie Ruhle and Pimm Fox. “Management is not trusted by the street,” said Singh, a former Goldman Sachs Group Inc. partner who co-founded New York-based TPG Axon in 2004.
Singh said in a Nov. 8 letter to the board that energy company SandRidge, based in Oklahoma City, should replace its Chairman and Chief Executive Officer Tom Ward and consider selling itself after a “disastrous” performance. SandRidge has declined 79 percent since it began trading in 2007.
SandRidge has overpaid its CEO and is an “insatiable spender” with an incoherent strategy, Singh wrote in the letter. SandRidge should replace some board members with independent directors and representatives of large shareholders, according to Singh, who said last week that his fund owns more than a 4.5 percent stake in the company. He has since increased his holdings in the company, he said today.
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