Claren Road Asset Management disclosed yesterday a new position in Canadian Solar Inc. (NASDAQ:CSIQ). The hedge fund, managed by Brian Riano, John Eckerson, Sean Fahey and Albert Marino, declared holding 3.2 million Common Shares, which account for approximately 5.83% of the company’s outstanding stock, and are worth about $83 million at current stock prices.
Claren Road Asset Management is a New York City-based privately owned hedge fund sponsor founded in January 2006. The firm operates as a subsidiary of The Carlyle Group LP (NASDAQ:CG), which acquired a 55% stake in Claren Road on December 31, 2010. The fund has offices in London, United Kingdom and Hong Kong, and focuses on the global high grade and high yield markets. According to its latest 13F filing, its equity portfolio is worth more than $1.4 billion (as of the end of the second quarter of 2014), and has a slight focus on energy stocks.
Canadian Solar Inc. (NASDAQ:CSIQ) is a $1.43 billion market cap solar power company that designs, develops, and manufactures solar wafers, cells and solar power products. Claren Road Asset Management’s purchase allegedly took place a few days after Canadian Solar Solutions Inc., a subsidiary wholly-owned by the company, closed the sale of three solar power plants, which totaled 30 MW AC and were valued at over $161.2 million, to TransCanada Corporation (USA) (NYSE:TRP).
Other major institutional investors betting on Canadian Solar Inc. (NASDAQ:CSIQ), just like Claren Road Asset Management, are Fang Zheng’s Keywise Capital Management and Steve Cohen’s Point72 Asset Management. Keywise Capital Management last disclosed (by the end of the second quarter of 2014) a 732% increase in its stake in the company, to 1.98 million shares, worth more than $61 million. For its part, Point72 Asset Management holds 461,400 shares of the solar power company. Moreover, Canadian Solar Inc. (NASDAQ:CSIQ) is amongst Fang Zheng’s top stock picks. Check out his other bets in this article: VipshopHoldings Ltd – ADR (VIPS), 58.com Inc (ADR) (WUBA), Canadian Solar Inc. (CSIQ): Some of Keywise Capital Management’s Top Picks.
But, why trail Claren Road Asset Management? Well, its top bet for the second quarter of the year was placed on another energy company: Cheniere Energy, Inc. (NYSEMKT:LNG). This stock has returned more than 54% year-to-date, widely outperforming both its industry peers and the broader market.
Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned
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