SunEdison Slumps Most in 14 Years as Hedge Funds Sell Stakes

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  • Loeb's Third Point sold its entire stake in SunEdison
  • SunEdison slowed solar growth to address liquidity conerns

SunEdison Inc. fell the most in 14 years after several hedge funds said they had reduced their holdings in the world’s biggest clean-energy developer or sold off their stakes completely.

SunEdison sank 34 percent to $3.02 at the close in New York, the biggest decline since September 2001.

Third Point, the hedge fund firm run by Daniel Loeb, sold its entire position in SunEdison in the third quarter, 12.4 million shares, according to a regulatory filing Nov. 13. David Einhorn’s Greenlight Capital said Monday it had reduced its holding by 6.2 million shares, to 18.6 million shares and Lone Pine Capital also exited its position in SunEdison, almost 10 million shares.

SunEdison has lost more than 90 percent of its value since mid-June as investors question its liquidity. It’s announced or completed more than $4 billion in acquisitions this year, including a planned deal for the residential rooftop developer Vivint Solar Inc. for $2.2 billion.

Shares in two companies SunEdison formed to buy and hold power plants have also collapsed. TerraForm Power Inc. has lost 59 percent of its value since its initial public offering in July 2014, and TerraForm Global Inc. has sunk 61 percent since its July IPO.