An activist hedge fund manager has resigned as a director at Frequency Electronics Inc., expressing “great concern” about the company’s direction, on the same day that the company hired Stanton Sloane, the former chief executive of Comtech Telecommuncations Corp., as chief operating officer.
Frequency Electronics, a Uniondale-based maker of timing devices for satellites and missiles, appointed Sloane, 66, as COO effective Sept. 12. Sloane has been a director of Frequency Electronics since August 2016.
Frequency CEO Martin Bloch praised Sloane in a news release issued Sept. 13, and said the board “has begun the process of succession planning at the chief executive officer level to assure a smooth transition.”
Bloch said he was “looking forward” to contributing to the company as chief technical officer.
Sloane was replaced as CEO of Melville-based Comtech in September 2016 after less than two years.
Meanwhile, director Ryan Levenson, principal of Atlanta-based Privet Fund Management, resigned from the company’s board. Levenson had become a director after mounting a proxy fight with the company in 2016, in which he complained that the board had failed to oversee “any tangible value creation.”
In a letter disclosed in a securities filing released Tuesday, he voiced “great concern for the current state of affairs at the company.” The letter is redacted for confidentiality in 11 areas.
Levenson’s letter to the board of directors touched on the company’s search for a CEO and also voiced concern about its “future viability.”
Privet Fund Management owned almost 12 percent of the shares of Frequency as of Sept. 30, 2016, the latest data available for Privet’s holdings, according to Bloomberg. The largest reported shareholder is Edenbrook Capital LLC of Bedford Hills, which owned 13.3 percent as of Tuesday, according to Bloomberg.
Shares of Frequency Electronics rose 9 cents Tuesday to close at $8.15, and are down about 26 percent in the past 12 months.
Calls to Privet and Frequency Electronics for further comment were not immediately returned.