Phill Gross and Robert Atchinson, the managers of Adage Capital Management, see value in TerraForm Power Inc (NASDAQ:TERP), an energy company that recently went public. As reported in a filing with the Securities and Exchange Commission, Adage Capital has initiated a new position through the acquisition of approximately 2.4 million shares. As a result, the fund has control over 8.68% of TerraForm Power Inc (NASDAQ:TERP)’s common stock.
Among the hedge funds that we track, Adage Capital is the first one to invest in TerraForm Power Inc (NASDAQ:TERP). The company went public on July 17, in an Initial Public Offering (IPO) priced at $25 a share. The market welcomed the company with open arms: the stock rallied more than 35% on the debut. A total of 20 million Class A shares were offered, generating net proceedings of approximately $533.5 million. The company also issued options for the underwriters to buy up to 3 million shares at the IPO price, which were exercised in full. TerraForm Power Inc (NASDAQ:TERP) used the proceedings from the offering to repay some of its debt, to finance new solar projects and for other corporate purposes.