Assessing Dinakar Singh and TPG-Axon’s 4Q13 positions

Assessing Dinakar Singh and TPG-Axon’s 4Q13 positions (Part 1 of 7)

Assessing Dinakar Singh’s TPG-Axon Capital positions in 4Q13

TPG-Axon Capital Management LP

TPG-Axon Capital Management LP (or TAC) is a privately owned $4 billion hedge fund firm founded by Dinakar Singh in February 2005 in partnership with private equity firm Texas Pacific Group. TPG-Axon Capital Management is based in New York, with additional offices in Hong Kong and Tokyo.

At the end of the fourth quarter, TPG-Axon had $2.5 billion in its equity portfolio, up from $1.59 billion in the third quarter. The fund’s notable positions traded last quarter include new stakes in Equinix Inc. (EQIX), Huntsman Corp. (HUN), Hertz Global Holdings Inc. (HTZ), and Spirit Aerosystems (SPR). The fund also sold its shares in Twenty-First Century Fox-A (FOXA) and CONSOL Energy Inc. (CNX).

TPG 4QEnlarge GraphTPG-Axon’s website states that the fund is a global investment firm focused on fundamental long/short investing across all geographies, primarily through equity securities. The activist hedge fund firm provides its services to high–net worth individuals, pension funds, and banking institutions.

Assessing Dinakar Singh's TPG-Axon Capital positions in 4Q13Enlarge Graph

The fund’s largest position last quarter was SandRidge Energy Inc. (SD), which sold its Gulf of Mexico assets in January to the PE-backed Fieldwood Energy for $750 million. SandRidge saw an activist push from TPG-Axon and Mount Kellett Capital Management last year, as the funds criticized SandRidge over its entry into offshore drilling. TPG had said the acquisition of the Gulf of Mexico assets in 2012 was “massively dilutive, and most importantly, strategically incoherent.” TPG-Axon was also instrumental in the replacement of SandRidge’s then-CEO, Tom Ward.

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