New York-based hedge fund ValueWorks has significantly increased its stake in Danish offshore wind developer Orsted A/S, seizing on this week’s record share price slump as a buying opportunity, according to a report by Bloomberg.
ValueWorks, which manages about $300m, boosted its position by nearly 50% on Monday, acquiring more than 100,000 shares at what Chief Investment Officer Charles Lemonides described as “bargain prices”. The purchase came after the company’s share price hit a record low following the Trump administration’s decision to stop work on Revolution Wind, a nearly completed offshore project off Rhode Island.
Analysts, however, expect the stop-work order to be temporary, echoing earlier reversals on other US projects.
The purchase, worth around $3m at the day’s average trading price, elevates Valueworks into Orsted’s top-40 shareholders. Lemonides also confirmed that the fund will participate in Orsted’s upcoming DKK60bn ($9.4bn) rights issue, half of which will be backstopped by the Danish state.
The move marks a rare vote of confidence in Orsted, which has lost 87% of its market value since its 2021 peak amid spiralling project costs and mounting political risks.
