Hedgies take an ax to Sunedison for Q3 2015

Hedgies are cutting back on Sunedison.

Einhorn reports dumping 25% of his position, or about 6.2 MILLION shares. I will have to see what his cost basis is but I recall the burn he got in homebuilders and housing and his admission that the “big picture” is a factor even in value investing.

Loeb is out.

Cooperman of Omega also took a knife to his holdings.

The upside, if any, is that at last there’s a washout. Problem is Einhorn and Cooperman are serious value players, and both have taken hits across the board on a variety of positions. TerraForm is squeezed by not being able to get financing, and so it’s a no-go for taking things off of Sunedison’s balance sheet, and that “warehousing” for cash margins on wind projects is a bitter consolation prize. The window for borrowing is unlikely to reopen anytime soon. Einhorn’s pick from Robin Hood is a Natural Gas play that has spun of coal – a decidedly non-alternative energy play, Consol Energy.

The Fly has already alerted you about the latest about the rumors of reclassification, RE: recourse vs. nonrecourse loans. That is a big question mark that will be resolved but right now a big fat question mark.

This is now in the hands of credit markets. Dangerous playing with the equity tranche, unless you came in ages ago and don’t need the money, until the picture over balance sheet and liquidity becomes clearer.