TerraForm Global Inc. (GLBL, Financial) is a divided growth-oriented renewable energy company (a yieldco) focused on emerging markets. The company went public in the third quarter at a lower-than-expected valuation. Its debt capital raise was also more expensive than anticipated, given difficult conditions in high yield and emerging markets. We believe in the secular renewable energy story and that parent SunEdison Inc.’s (SUNE) large development pipeline will benefit its yieldcos. We think the market dislocation is technical and temporary and that TerraForm Global will resume future growth. (Rebecca Ellin)
From Baron Funds' Baron International Growth Fund shareholder letter for third quarter 2015.
