Legacy Ridge Capital Management Exits Summit Midstream Corporation Position

Legacy Ridge Capital Management, a Colorado-based hedge fund, sold its entire position in Summit Midstream Corporation during the first half of 2026. In a Q2 2026 investor letter, the firm characterized the investment as a "massive investing mistake" that began in 2017 and was adopted into the partnership at its founding in 2018.

The fund attributed the poor performance to a focus on yield despite declining oil and gas production in specific basins and increasing leverage metrics. While the firm acknowledged that Summit Midstream CEO Heath Deneke saved the company, it ultimately exited the position because the company lacked a more aggressive strategy to create shareholder value. Legacy Ridge reallocated the resulting capital into an existing energy position.