Hedge Fund Apex Rips Boat-Loving Software Exec.

Feb 6 2014 | 12:21pm ET

Apex Capital founder Sanford Colen says his is not an activist hedge fund. If so, his talents are perhaps being wasted.

Colen sent a scathing letter to the board of MicroStrategy this week, lambasting its failure to return capital to investors and calling for the removal of founder Michael Saylor as CEO. It is, however, Saylor's professed love of boats—and the amount of time he spends on them—that shows Colen at his cutting best.

"The recent stream of photos of Mr. Saylor's yachts in exotic locations (as posted on his Twitter feed) does little to assuage our fears that the company's senior management is not fully engaged in the day-to-day operations of the business or agonizing over inferior shareholder returns," Colen wrote. He called for Saylor to be replaced as CEO, while leaving him as the software company's chairman.

Saylor's Twitter feed does indeed show two pictures of his yacht, Harle, one in Saint Lucia and the other off the coast of Grenada.

"We recommend that the board conduct an extensive executive search for a CEO capable of being fully engaged with the daily business and operations of the company," Colen wrote. Colen also called for a $455 million share buyback program.

MicroStrategy declined to comment on Colen's letter.

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