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Wednesday, August 8, 2012

TPG-Axon Dinkar Singh

TPG-Axon's Dinkar Singh was on Bloomberg recently. He is still long most of the telecom stocks - remember he was recently bullish on Equinix (EQIX).

He thinks the market is currently in a dangerous place. The U.S. is up nicely this year but people have gotten scared and they are paying a lot for safety (dividends and safety). He thinks we are now in a stockpickers market - meaning asset selection really matters over sector allocation (i.e. divergence from risk on vs. risk off).

He also talks about Sirius XM (SIRI), they have a double digit FCF yield, cash is growing, John Malone is the largest shareholder, and the value is growing. He thinks they will be integrated with Liberty Media - FCF will have doubled and the value will increase materially.

On the short side he is short telecom services - as a funding short (i.e. not priced correctly but not going to zero). He is also bearish on U.S. regional banks because they will not make very much money in this low rate environment. For the global money center banks he thinks the bad news is out there and they can make money.


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