David Tepper: Activist And Lawyer

David Tepper’s Appaloosa Management is officially an activist investor at TerraForm Power (TERP). Tepper reveals a 9.25% stake in TERP and threatens legal actions against TERP and its general partner SunEdison (SUNE).

The fund sent a letter to TerraForm. Now Tepper isn’t a typical activist but is one of the most well known (highest paid) hedge fund managers around. it takes a lot for him to lash out publicly, where this is his first activist campaign in nearly a decade.

Now this isn’t an easy stock to understand, where it’s a SunEdison YieldCo and the financial engineering there is ridiculous. There are intricacies here that supersede the typical MLP structure we see in energy names.

Charlie Munger: Invert And Use “Disconfirming Evidence”

Charlie MungerCharlie Munger is considered to be one of the best investors and thinkers alive today. His thoughts and statements on investment research, investment psychology, and general rational behavior are often incredibly insightful. Anyone can learn something from this billionaire investor and philosopher. Q2 2020 hedge fund letters, conferences and more If you’re looking for value Read More

But back to Tepper – the corporate governance at TerraForm is a mess. He may sue TERP and SUNE. He thinks that SUNE is using TERP as a dumpster for poor acquisitions. The legal issues come into play with the Nov. 20th board meeting at TERP — when SUNE replaced management and various board members. Still a dumpster fire here and at SUNE.

Sunedison sune terp crash again 11 17 2015
Via S&P CapIQ