In four separate filings, David Tepper’s Appaloosa Management, Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital, Brad Gerstner’s Altimeter Capital Management, and Julian Robertson’s Tiger Management disclosed their latest moves involving TerraForm Power Inc (NASDAQ:TERP), Pure Storage Inc (NYSE:PSTG), and Enzymotec Ltd (NASDAQ:ENZY), respectively. Let’s take a closer look at the four transactions.
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TerraForm Power Inc (NASDAQ:TERP) is engaged in owning and managing solar-energy projects, having a market cap of $1.10 billion. Blue Mountain Capital has increased its position in the company to 9.17 million Class A shares, up from 8.08 million shares held previously. The stake represents 11.5% of the company’s stock. In its latest filing, Blue Mountain has stated that it acquired more shares Class A shares of the company for investment purposes. Shares of TerraForm Power have declined by 74.48% year-to-date. For the third quarter, TerraForm Power Inc (NASDAQ:TERP) reported a net income of $2.42 million compared to a loss of $1.87 million in a year-ago quarter. Operating revenues rose to $163.3 million compared to $53.6 million in the same period of 2014. Another investor that values TerraForm Power is Christian Leone’s Luxor Capital Group, with ownership of 4.66 million shares as of at the end of September.
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In a separate filing, Appaloosa Management disclosed a letter it sent to TerraForm Power, stating that the company needs to keep Sunedison Inc (NYSE:SUNE) at arm’s length. According to the filing, Appaloosa Management holds 7.60 million Class A shares, equal to 9.50% of the company’s stock. This compares to 7.40 million shares the investor reported previously.
TerraForm Power is a yieldco formed by SunEdison. SunEdison signed an agreement to acquire Vivint Solar for $2.2 billion, and TerraForm Power, as a part of the deal, will buy the residential solar rooftop portfolio of Vivint for $922 million. The investor views the proposed Vivint transaction as a breach of proper governance procedures and principles. Further, Appaloosa noted that TerraForm Power can regain its balance only with independent leadership that is determined to honor the company’s mandate to “acquire, operate and own renewable energy generation assets serving utility and commercial customers that generate high-quality contracted cash flows.”
Appaloosa Management said that the Vivint Solar deal marked an unfortunate departure from TerraForm Power’s business model. The deal appears to serve the sole purpose of promoting SunEdison’s desire to acquire Vivint’s development and operating assets, rather than enhancing the quality and value of TerraForm Power’s holdings, according to the letter. Moreover, Appaloosa Management stated that the transaction poses a serious threat to TerraForm Power’s prospects and should be vigorously resisted by the company, as the unaffiliated shareholders’ advocate.
On the next page, we’ll talk about the latest moves of Altimeter Capital Management and Tiger Management.
In its latest filing, Tiger Management disclosed upping its position in Enzymotec Ltd (NASDAQ:ENZY) to 1.16 million shares, up from 804,854 ordinary shares held previously. The stake is passive by nature and represents 5.2% of the company’s stock. Enzymotec is a developer and maker of innovative bio-active lipid based nutritional ingredients and medical foods. Enzymotec Ltd (NASDAQ:ENZY)’s performance was impressive during the third quarter. The company’s income increased to $1.5 million, or $0.07 per share, versus $1.2 million, or $0.05 per share, a year ago. Its revenues were $12.4 million, a year-over-year increase of 30.7%. John Paulson’s Paulson & Co holds 4.24 million shares of the company, worth $38.37 million as of the end of the third quarter.
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In addition, Altimeter Capital has disclosed a new position in Pure Storage Inc (NYSE:PSTG), a flash enterprise storage array company, with a market cap of $3.23 billion. The filing showed that Altimeter Capital holds 1.80 million Class A common Pure Storage shares; the passive stake is equal to 7.2% of the company’s stock. In the third fiscal quarter ended October 31, Pure Storage Inc (NYSE:PSTG)’s loss widened to $56.5 million, versus $40.4 million in the year-ago quarter. However, the company was able to boost its revenue to $131.4 million compared to $49.2 million last year. During the third quarter, Pure Storage added over 250 new customers, increasing its customer base to more than 1,350 organizations. In October, Pure Storage (NYSE: PSTG) completed its initial public offering under which 28.75 million shares Class A common shares were sold at a price of $17.00 per share.
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