Energy is one of the most important topics in the world economy at the moment, particularly from a long-term standpoint. As renewables continue to gain greater support from both sides of the political aisle in the U.S. (and in many developed and developing nations abroad), there’s inevitably a push toward investment opportunities in this space. Publicly-traded solar energy companies are in particular focus, and names like First Solar, Inc. (NASDAQ:FSLR), SunPower Corporation (NASDAQ:SPWR) and GT Advanced Technologies Inc (NASDAQ:GTAT) have been brought to the center of Mr. Market’s attention.
Speaking of First Solar specifically, it is important to mention that in its recent acquisition of the Japan-based TetraSun, there exists a key opportunity for expansion that couldn’t exist elsewhere. In Japan in particular, limited land availability reduces the space that solar providers have for PV plants, and TetraSun, which specializes in rooftop systems, should be a good way for First Solar, Inc. (NASDAQ:FSLR) to expand vertically, rather than horizontally–literally speaking.
While there are plenty of metrics available for the average investor to use when analyzing First Solar, one that is the most crucial is hedge fund sentiment. Empirical research has found that it has been possible for piggyback buyers to beat the market by 18 percentage points a year while following hedge funds’ best picks; learn how they did it here.
If we look into our database (check it out here), 18 funds hold shares in First Solar, Inc. (NASDAQ:FSLR), including Coatue Management, managed by Philippe Laffont, Tiger Global Management, and John Thaler’s Jat Capital Management.
GT Advanced Technologies Inc (NASDAQ:GTAT) is also doing well amid its announcement that new equipment developments will raise the efficiency of its crystalline cells by 4% to over 22%. A total of 16 funds held positions in GT at the end of the last filing period, and Eric Sprott’s Sprott Asset Management, Platinum Asset Management managed by Kerr Neilson, and Paul Tudor Jones’s Tudor Investment Corp, are the cream of the crop.
In addition to First Solar, Inc. (NASDAQ:FSLR) and GT Advanced Technologies Inc (NASDAQ:GTAT), hedge funds are positioning themselves in a few other solar stocks. We almost always rank equities by hedge fund sentiment, but in an industry as volatile as solar, it’s especially crucial to see which players are loved by the smart money, because there may be some undervalued gems set to pop in the short- to intermediate-term.
Continue reading the list on the following page:
1. Applied Materials, Inc. (NASDAQ:AMAT)
Number of HFs invested in Q4: 24
Number of HFs invested in Q3: 27
YTD Return: 26.62%
Top hedge funds invested: Sandy Nairn’s Edinburgh Partners, Charles De Vaulx’s International Value Advisers, and Martin Whitman’s Third Avenue Management
2. First Solar, Inc. (NASDAQ:FSLR)
Number of HFs invested in Q4: 18
Number of HFs invested in Q3: 19
YTD Return: 48.4%
Top hedge funds invested: Philippe Laffont’s Coatue Management, Tiger Global Management Llc, and John Thaler’s Jat Capital Management
3 (tie). GT Advanced Technologies Inc (NASDAQ:GTAT)
Number of HFs invested in Q4: 16
Number of HFs invested in Q3: 18
YTD Return: 28.71%
Top hedge funds invested: Kerr Neilson’s Platinum Asset Management, Phil Frohlich’s Prescott Group Capital Management, and Joel Greenblatt’s Gotham Asset Management
3 (tie). MEMC Electronic Materials, Inc. (NYSE:WFR)
Number of HFs invested in Q3: 16
YTD Return: 65.42%
Top hedge funds invested: Rishi Bajaj, Toby Symonds, & Steve Tesoriere’s Altai Capital, Clint Carlson’s Carlson Capital, and Joseph A. Jolson’s Harvest Capital Strategies
5 (tie). Trina Solar Limited (ADR) (NYSE:TSL)
Number of HFs invested in Q3: 8
YTD Return: 13.99%
Top hedge funds invested: Kerr Neilson’s Platinum Asset Management, Mark Mcgoldrick And Jason Maynard’s Mouth Kellett Capital Management, and John A. Levin’s Levin Capital Strategies
5 (tie). SunPower Corporation (NASDAQ:SPWR)
Number of HFs invested in Q4: 9
Number of HFs invested in Q3: 13
YTD Return: 131.8%
Top hedge funds invested: Chuck Royce’s Royce & Associates, Philip Hempleman’s Ardsley Partners, and John A. Levin’s Levin Capital Strategies
7 (tie). Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE)
Number of HFs invested in Q4: 6
Number of HFs invested in Q3: 4
YTD Return: 2.98%
Top hedge funds invested: John A. Levin’s Levin Capital Strategies, Himanshu H. Shah’s Shah Capital Management, and Israel Englander’s Millennium Management
7 (tie). Canadian Solar Inc. (NASDAQ:CSIQ)
Number of HFs invested in Q4: 6
Number of HFs invested in Q3: 5
YTD Return: 51.47%
Top hedge funds invested: Himanshu H. Shah’s Shah Capital Management, John Hurley’s Cavalry Asset Management, and Andrew R. Midler’s Savitr Capital
9. Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP)
Number of HFs invested in Q3: 8
YTD Return: -56.9%
Top hedge funds invested: Jim Simons’s Renaissance Technologies, Himanshu H. Shah’s Shah Capital Management, and Mark Mcgoldrick & Jason Maynard’s Mouth Kellett Capital Management
10. LDK Solar Co., Ltd (ADR) (NYSE:LDK)
Number of HFs invested in Q3: 3
YTD Return: 0.4%
