Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Carl Icahn Believes Cheniere Energy Inc. (LNG) Is Undervalued and Acquires 8.18% Stake

Page 1 of 2

According to a 13D filing with the SEC, Icahn Partners, overseen by billionaire Carl Icahn, has initiated a position in Cheniere Energy Inc. (NYSE:LNG). The filing revealed that Carl Icahn’s firm and its affiliates collectively own 19.35 million shares of the energy company, which represent 8.18% of its outstanding common stock. Reportedly, Carl Icahn believes that the shares of Cheniere are undervalued and announced his intention to discuss with the company’s management and Board of Directors on its operations, capital expenditures, financings, and executive compensation in order to find opportunities that might unlock shareholder value. Carl Icahn may also seek shareholder board representation if he considers suitable.

Hedge Fund Strategies

Activist investor Carl Icahn is not afraid to increase his exposure in the energy sector after suffering substantial losses in this sector this year caused the worst commodity price crash for a long period of time. At the beginning of the year, Carl Icahn’s publicly traded holding company Icahn Enterprises LP suffered its first annual net loss since the financial crisis of 2008, which was triggered by the glut of the fuel that collapsed prices.  Icahn’s latest 13F, for the first quarter of 2015, disclosed around 14% of its $32 billion equity portfolio allocated to the energy sector. Among his top energy picks are Talisman Energy Inc. (NYSE:TLM) and Chesapeake Energy Corporation (NYSE:CHK).

Carl Icahn
Carl Icahn
Icahn Capital LP

Following activist investors like Carl Icahn is important because it is a very specific and focused strategy in which the investor doesn’t have to wait for catalysts to realize gains in the holding. In recent years, the returns of activist hedge funds have been much higher than the returns of their passive peers. Furthermore, we believe do-it-yourself investors have an advantage over activist hedge fund investors because they don’t have to pay 2% of their assets and 20% of their gains every year to compensate hedge fund managers. We have found through extensive research that the top small-cap picks of hedge funds are also capable of generating high returns and built a system around this premise. In the 32 months since our small-cap strategy was launched it has returned over 123% and beaten the S&P 500 ETF (SPY) by more than 65 percentage points (read more details).

Cheniere Energy Inc. (NYSE:LNG) is an energy company that primarily engages in Liquefied natural gas (LNG) related businesses. The company owns and operates the Sabine Pass LNG receiving terminal and Creole Trail Pipeline, located in Louisiana, through its general partner ownership interest in Cheniere Energy Partners L.P. (NYSE:CQP) and its partial ownership interest in Cheniere Energy Partners Holdings LLC (NYSE:CQH). The stock is down by 7% year-to-date, but it appreciated by more than 4% in pre-market trading on Friday.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!