Shares of SunEdison, Inc. (SUNE, Financial), the world’s largest renewable energy developer, declined in the wake of its acquisition of U.S. residential solar developer Vivint Solar, with plans to drop down its solar portfolio to its yieldco TerraForm Power, Inc. Investors questioned aspects of the deal, including its $2.2 billion cost. We believe in the secular renewable energy story and that SunEdison’s large development pipeline will benefit it and its yieldcos. We think the market dislocation is technical and temporary and that SunEdison will likely resume growth in the future.
From Baron Funds' Fifth Avenue Growth Fund 3rd quarter 2015 commentary.
