Meet David Tepper: Activist Investor
David Tepper of Appaloosa Management penned a letter to TerraForm (TERP) today. The stock surged 30% in a day. But it's still down 70% for the year. Nonetheless, Tepper is taking an activist approach with his letter.
Tepper says that TERP isn't acting in shareholders best interests. The big issue is that SunEdison is imposing its will on TERP, using it as a dumping ground for acquisitions. SunEdison has taken over the board at TERP. They're both overloaded with debt, and while Tepper owns shares and bonds, I can't see it being a big bet for him. He doesn't have a lasting answer for the company. TERP could live without SunEdison, but SunEdison will go down swinging and tear TERP apart in the process.