Has Sunedison Inc (SUNE) Reached Bottom as It Gains 5% on Loan Facility News

With this in mind, when it comes to Sunedison, we can see that hedge funds clearly like the stock as at the end of March, 94 investors held some $4.44 billion worth of stock, which represented 68% of the company. Moreover, the number of hedge funds with long positions increased by six during the first three months of the year, while the aggregate value of their holdings surged from $3.73 billion at the end of December. In addition, among long investors in Sunedison, nine are represented by funds managed by billionaires, which should not be overlooked.

One of the top shareholders of Sunedison Inc (NYSE:SUNE), is David Einhorn‘s Greenlight Capital, which held 24.95 million shares at the end of March. Greenlight has been bullish on the company for more than a year and has been saying that the company has a lot of upside potential. Another investor that likes the company is Donald Chiboucis’ Columbus Circle Investors, which owns 1.13 million shares as of the end of June, having increased its stake by 605,100 shares during the second quarter.

To conclude, we still have to see if Sunedison Inc (NYSE:SUNE) has reached the bottom and is about to start its recovery. The hedge fund sentiment has probably fallen as some investors exited their positions to minimize losses, however, large money managers will most likely stick to their shares because they don’t have a lot of exposure to Sunedison in terms of equity portfolio value (for example, Greenlight’s $600 million stake amassed 7% of its equity portfolio at the end of March). That’s why we agree with analysts and consider that Sunedison has a lot of long-term potential and therefore is a good investment.

Disclosure: none