As Insider Monkey data show, a total of 78 hedge funds’ portfolio had long positions in Sunedison Inc (NYSE:SUNE) at the end of the third quarter of 2014, with Leon Cooperman, David Einhorn and other ‘big shots’ of the hedge fund universe still bullish on the stock. However, SUNE investors should pay attention to a decrease in hedge fund interest during the July-September period as the aggregate number of funds invested decreased by one.
Insider Monkey is a website that tracks the activity of around 700 greatest hedge funds in terms of return. Overal, there are over 8,000 funds fully functional, but experts at Insider Monkey hone in on the elite of this group. Many retail investors do not pay attention to hedge funds and insider trading activity. However, most estimates calculate that by tailing the inimitable picks of the funds that amass the largest portion of the total hedge fund industry’s assets, it is possible to identify some insightful strategies that can help outperform the broader market. In this way, Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 18 percentage points a year for the long term.
With all of this in mind, we’re going to take a look at the new action surrounding Sunedison Inc (NYSE:SUNE).
Hedge fund activity in Sunedison Inc (NYSE:SUNE)
As we’ve already mentioned, a total of 78 of the hedge funds tracked by Insider Monkey were bullish on Sunedison, a change of -1% from the second quarter. With hedgies’ sentiment going up, there is an “upper tier” of notable hedge fund managers who were boosting their stakes more than their peers from the industry.
As Insider Monkey data show, David Einhorn’s Greenlight Capital had the most valuable stake in Sunedison Inc (NYSE:SUNE), worth close to $401.7 million, comprising 5.8% of its total 13F portfolio, followed by David Kowitz and Sheldon Kasowitz’s Indus Capital, with a $196.7 million position, equal to 19.3% of its equity portfolio. Other peers with similar optimism contain Robert Pitts’s Steadfast Capital Management, Larry Robbins’s Glenview Capital and Leon Cooperman’s Omega Advisors.
However, because Sunedison Inc (NYSE:SUNE) has experienced declining sentiment from the entirety of the hedge funds we track, there are several investors that decided to sell off their holdings at the end of the third quarter. For example, Barry Rosenstein’s JANA Partners cut the largest stake among funds tracked by Insider Monkey, which was previously valued at $235.4 million, and Doug Silverman and Alexander Klabin of Senator Investment Group was right behind this move, as the fund dropped about $90.4 million worth of stock. These moves are important to note, as total hedge fund interest fell by 1 funds at the end of the third quarter.