Chase Coleman’s Tiger Global Management disclosed on Thursday that it increased its position in Sunrun Inc. (RUN, Financial) 5.15% according to GuruFocus real-time picks.
Coleman, a former protégé of Julian Robertson (Trades, Portfolio), prefers investing in small caps and technology companies. His firm invested in 682,669 shares of Sunrun for $12.44 per share, increasing the position to 13,937,606 shares.
Company background
San Francisco-based Sunrun provides residential solar, storage and energy services to over 189,000 customers in the U.S. as of March 31, up 31% year over year. CEO Lynn Jurich said on May 9 that consumers wish to freely take control of their energy needs. Jurich also mentioned that during the quarter, Sunrun has delivered “reliable, clean energy and over $200 million in savings” to its customers.
Net present values per watt increased to $1.10 during the quarter compared to 83 cents from the prior-year quarter. Company revenues of $144.4 million, of which $77.4 million came from solar energy systems and product sales, increased 37% year over year. Even though the company produced fewer megawatts during the quarter, Sunrun expects to deploy 88 megawatts during the upcoming quarter, reflecting a 16% year-over-year increase.
Sunrun’s profitability ranks a poor 4 out of 10 as the company’s operating margin and Joel Greenblatt (Trades, Portfolio) return on capital underperform over three-quarters of global competitors. GuruFocus lists several warning signs for Sunrun, including poor Sloan ratios and operating losses sometime during the past three years.
See also
Tiger Global’s high-conviction stocks include Autodesk Inc. (ADSK, Financial), Facebook Inc. (FB, Financial) and Apollo Global Management LLC (APO, Financial). As of March 31, the firm devoted 32.8% of its portfolio to technology companies, representing the second-largest sector weight. Other top holdings include Amazon.com Inc. (AMZN, Financial), JD.com Inc. (JD, Financial) and Microsoft Corp. (MSFT, Financial).
Disclosure: no positions.
