As stated by a Schedule 13G filing, Christian Leone’s Luxor Capital Group LP acquired a 20.81 million-share stake in SunEdison Inc. (NYSE:SUNE), which accounts for 5.3% of the company’s shares. The shares of the global renewable energy development company have plummeted by 89% over the past year, and they keep going lower. On January 12, Appaloosa Management L.P., a hedge fund managed by David Tepper, filed a verified stockholder derivative complaint against SunEdison in relation to the acquisition of solar-power provider Vivint Solar Inc (NYSE:VSLR). The lawsuit alleges that SunEdison, as TerraForm Power Inc. (NASDAQ:TERP)’s controlling stockholder, “breached its fiduciary duties to TerraForm Power and its minority stockholders by causing” the yieldco to acquire Vivint’s assets from SunEdison at the expense of TerraForm’s interests by acquiring the assets at an unfair price, among other things. According to the billionaire investor, SunEdison’s intent to buy Vivint Solar for approximately $2.2 billion and force the yieldco to increase its debt burden to over $900 million in assets are not in TerraForm Power’s interests. The smart money sentiment towards SunEdison was very negative in the third quarter, as the number of hedge funds in our database invested in the company dropped to 73 from 93 quarter-over-quarter. David Einhorn’s Greenlight Capital holds 18.61 million shares of SunEdison Inc. (NYSE:SUNE) as of September 30.
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According to a freshly-amended 13G filing, Odey Asset Management currently owns 2.62 million shares of BMC Stock Holdings Inc. (NASDAQ:STCK), representing 4.00% of the company’s outstanding shares. On December 1, Stock Building Supply Holdings Inc. and privately-held Building Materials Holding Corp. (BMC) completed their previously-announced deal. Under the terms of the merger deal, BMC shareholders received 0.5231 newly-issued Stock Building Supply shares for each BMC share. After the completion of the merger, the company was renamed BMC Stock Holdings Inc. Odey Asset Management owned 2.35 million shares of the former Stock Building Supply Holdings as of September 30.
BMC Stock Holdings Inc. (NASDAQ:STCK) operates as a diversified lumber and building materials distributor. The company’s shares are down by 22% over the past year, mainly owning to a 26% drop suffered since early 2016. The company reported net sales of $1.01 billion for the nine months that ended September 30, up by $27.6 million relative to the same period of the prior year. The increase was mainly achieved as a result of higher volumes, which was partly offset by commodity price deflation. It is also important to note that the stock trades at a rather attractive forward P/E of 13.66. A total of 11 hedge funds that we track had positions in the company at the end of the third quarter, accumulating 18.90% of its shares. David Keidan’s Buckingham Capital Management acquired a new stake of 650,107 shares of BMC Stock Holdings Inc. (NASDAQ:STCK) during the July-to-September period.
