SolarCity Reports Good News but This Hedge Fund Manager Disagrees

However, overall, hedge funds are bullish on SolarCity, since they amassed almost 25% of the company at the end of June (see how it ranked among other renewable energy stocks). Of the around 730 funds we track, 34 held stakes worth $1.28 billion in aggregate at the end of the second quarter, compared to 36 funds with positions valued at $1.02 billion on March 31. Karthik Sarma‘s SRS Investment Management owns 8 million shares, while Joshua Friedman and Mitchell Julis’ Canyon Capital Advisors owns 3.03 million shares. John Burbank’s Passport Capital holds 2.84 million shares too. Currently, around 44.8% of SolarCity’s float are short with Chanos being one of them.

Although SolarCity shares are down 13.2% year to date, the stock has performed better than its peers. SolarCity has largely sidestepped the solar yieldco carnage caused by low crude prices and is growing rapidly. Management will need to execute well as rising interest rates and expiring tax credits are on the horizon.

Disclosure: none