h/t Palantir; Do you like investing in speculative companies with leverage up the wazoo, complex financial engineering, downside exposure to rising interest rates, backlog that may not materialize, uncertain returns, crazy execution risk and high valuations?
I do! So I have recently started a position in Sunedison Inc. This situation is complex, but my take is pretty simple, I’m investing in a security with about a 5-6% CAFD yield that I expect to grow at minimum 20%/year for many, many years. The YieldCo transactions with TERP and GLBL I expect to yield plenty of upside due to IDRs.
Down 50% in 30-days is a rough ride.
Seth Klarman: Investing Is Art First, Craft Second And Science Third
Seth Klarman is considered to be one of the best value investors of all time. Unfortunately, he does not give many interviews or lectures. Q2 2020 hedge fund letters, conferences and more Luckily, those interviews and speeches that he does give are stuffed full of information and highly insightful comments that value investors can learn Read More
To some extent I may be late as all the smart money like Leon Cooperman, Dan Loeb, Stephen Mandel, David Einhorn, Glenview and Fir Tree have been in it for a while, but with today’s 25% drop, I feel the situation is more compelling than ever.
Here’s David Einhorn’s 2014 presentation on SunEdison.