New York (HedgeCo.net) – SunEdison (NYSE: SUNE) used to be one of the darling stocks of the hedge fund industry and counted well-known fund managers like David Einhorn, Dan Loeb and Stephen Mandel as investors. With the stock falling over 90% since its high in July, these noted hedge fund managers have lost patience and have either sold all of their holdings or cut their allocation considerably.

A recent article from Zacks Equity Research highlighted the incredible fall in the stock and it cited the company’s aggressive expansion through acquisitions as the downfall for the stock. The acquisition spree that started last year has become a burden with SUNE unable to fund the projects.

The article from Zacks mentioned three specific takeovers and it pointed out that the outstanding debt for SUNE nearly doubled from $6.3 billion at the end of the third quarter in 2014 to $11.7 billion at the end of the third quarter this year. This debt led to an interest expense of $516 million through the first three quarters of 2015.

If all of that wasn’t enough to concern investors, the company’s most recent earnings report was disappointing from a bottom-line standpoint and it was mainly due to the increase in interest expenses as well as increasing general and administrative expenses.

Rick Pendergraft
Research Analyst
HedgeCoVest