Zach Schreiber’s PointState Capital is among the 500-plus mega-funds that we track at Insider Monkey, and with six former Duquesne Capital portfolio managers, this is really the new Duquesne minus Stan Druckenmiller. Seeing as the fund has recently filed its first-quarter 13F with the SEC, we’re going to take a look at some of the top stocks it was positioning itself in for the start of Q2. Regular investors have beaten the market by piggybacking the right kind of hedge fund sentiment, so it’s worth paying attention; discover the secrets of this strategy.
The fund reported a $384.3 million stake of 13,724,433 shares in the energy company Cheniere Energy, Inc. (NYSEMKT:LNG), up from the previous quarter, when the fund held 13,670,333 shares, worth about $256.7 million. Shares are up more than 60% year to date, on the back of investor optimism surrounding Cheniere Energy, Inc. (NYSEMKT:LNG)’s bright future in the natural gas exports arena. We’ve written about PointState’s love of this stock before, and while many analysts called bullishness speculation last year, now, we’ve come a lot closer to game time, so to speak.
The U.S. DoE recently gave a conditional export approval to ConocoPhillips (NYSE:COP)’s and The Dow Chemical Company (NYSE:DOW)’s Freeport LNG terminal, making the approval held by Cheniere Energy, Inc. (NYSEMKT:LNG)’s Sabine Pass terminal look even sweeter. Sabine’s extremely close proximity to the Gulf (less than five miles!) is one advantage that the company will have when it goes operational in 2015, and low transportation costs will be a boon to Cheniere Energy, Inc. (NYSEMKT:LNG)’s bottom line. Keep this in mind; it will be a theme of another stock in PointState’s top five.
The best of the rest
The second most-valuable holding stated in the 13F is News Corp (NASDAQ:NWSA). As of March 31, 2013, the hedge fund held 9,567,440 shares worth $291.9 million, up from $145.5 million one quarter earlier. Like Cheniere Energy, Inc. (NYSEMKT:LNG), News Corp (NASDAQ:NWSA) has returned double-digits in 2013, as Mr. Market has been anticipating the media giant’s spinoff this summer. Like most spinoff scenarios, the company initiating the move (News Corp) will be viewed as the lower-growth investment post-split, in comparison to the spun off entity (21st Century Fox), which will hold the higher-growth film and TV assets. It’s unclear which arm PointState will be interested in after the move, but we’ll keep you posted of any updates to this situation.