SunEdison’s Bankruptcy Does Not Scare Hedge Funds Away From Solar

#2. TerraForm Power Inc. (NASDAQ:TERP)

– Investors with long positions as of March 31: 29

– Aggregate value of investors’ holdings as of March 31: $353.96 Million

TerraForm Power Inc. (NASDAQ:TERP), the other satellite of SunEdison, also received more attention from the hedge funds stalked by Insider Monkey during the first quarter of the year. The number of money managers with stakes in the yieldco climbed to 29 from 24 quarter-over-quarter, whereas the value of the stakes plummeted to $353.96 million from $608.80 million. The 29 “hedge fund” shareholders of TerraForm Power amassed roughly 29% of the company’s outstanding shares. As in the case of the other yieldco, TerraForm Power is late in submitting its 10-K annual report because of SunEdison, which means there is risk of technical default on its credit lines. The company has not yet filed its Form 10-Q for the March quarter because it had identified “material weaknesses in internal controls over financial reporting”, including the valuation of costs of the projects acquired from parent company SunEdison and other issues related to accounts payable and general and administrative expenses. TerraForm Power has seen its market capitalization sink 31% year-to-date. David Einhorn’s Greenlight Capital has 2.85 million shares of TerraForm Power Inc. (NASDAQ:TERP) in its portfolio as of March 31.

#1. First Solar Inc. (NASDAQ:FSLR)

– Investors with long positions as of March 31: 31

– Aggregate value of investors’ holdings as of March 31: $465.39 Million

A total of 31 hedge funds monitored by Insider Monkey were invested in First Solar Inc. (NASDAQ:FSLR) at the end of the March quarter, as compared to 30 registered at the end of the previous quarter. Meanwhile, the overall value of those hedge funds’ equity investments in the company dropped to $465.39 million from $471.19 million quarter-over-quarter. Although shares of First Solar are down 23% so far in 2016, the provider of comprehensive photovoltaic solar energy solutions is seen as one of the best solar stocks for the long term. The company’s net sales for the first three months of 2016 were $848.5 million, which increased 81% year-over-year. The increase in First Solar’s top-line figure was mainly attributable to additional interest and construction related to its Desert Stateline project, continued construction on its Silver State South and McCoy projects, as well as the start of construction on its Astoria project in late 2015. Cliff Asness’ AQR Capital Management owns nearly 1.40 million shares of First Solar Inc. (NASDAQ:FSLR) as of the end of the first quarter.

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