Dinakar Singh, founder of $4 billion hedge-fund firm TPG-Axon Capital Management LP, said he likes energy and health-care stocks in a market where it’s harder to find value.
“I’m not worried about the U.S. market, but finding value is hard,” Singh said today in an interview on Bloomberg Television’s “Market Makers” with Erik Schatzker and Stephanie Ruhle. “Hospitals and energy are the few areas where there is real change in the U.S.”
Singh, a former Goldman Sachs Group Inc. partner who co-founded New York-based TPG-Axon in 2004, said most of his largest investments are outside of the U.S., focusing on Japan, Asia and Europe because U.S. valuations are “full” and margins are high. Valuations in Asia are low as investors are shunning the emerging markets, yielding some “great gems,” he said.
Japan is the best “stock-picking market right now” because of the government’s economic growth strategy, Singh said. He said Hitachi Ltd. (6501) is a “very good company.”
Singh said he doesn’t think there will be much activism, where shareholders to push for change in companies, outside of the U.S.
“It doesn’t work structurally in Japan and the rest of Asia,” he said. “We would not pick a fight with Sony.”
Sony Corp. (6758), based in Tokyo, has rejected U.S. hedge-fund manager Daniel Loeb’s push for a partial sale of its entertainment assets.
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