The Steppe Eagle OEIC Ltd on SolarEdge Technologies, Inc.
Thesis
SolarEdge remains a recovery position in a cyclical solar-inverter business that the fund has followed since 2017. The historic appeal was 25-35% annual revenue growth, rising operating profit and modest debt, supported by leadership in both the US and European solar markets. The 2024 downturn exposed unnecessary product diversification and weak profit-margin control, forcing leadership changes, but the fund says the business subsequently showed signs of recovery. The position remains materially below its average cost of $117.5 despite the 2025 rebound. P(1) Harry Qelm Baabsman Steppe…
“The business showed signs of recovery, and the stock price changed from $13 to $33-39 in 2025.”
Key risks
- The business is highly cyclical
- Unnecessary product diversification hurt execution
- Weak profit-margin control required management changes