Shares of SolarEdge Technologies, Inc. (NASDAQ:SEDG), a leading maker of inverters for solar energy systems, detracted in the third quarter as changes in the U.S. market appeared to dampen growth prospects of large installers. As the business model shifts from lease to own, the U.S. solar market is shifting from large installers to smaller, local vendors. Fears around pricing pressure due to increased competition also hurt the stock price. Although we believe this is a temporary structural adjustment, we decided to reduce our position as the market transitions.
From Baron Energy and Resources third quarter 2016 commentary.
