Hedge Funds Are Hoarding Shares Of These Companies

NRG Yield Inc (NYSE:NYLD) is next on our list, with the smart money we follow owning 58.09% of its shares on June 30. The ‘yieldco’ of NRG Energy Inc (NYSE:NRG), NRG Yield counted 32 hedge funds among its investors, with them hanging on to over $439 million in shares. Those figures were up from just 16 funds a quarter earlier, which held $340 million in shares. Similar to Sunedison, Both NRG Energy and its yieldco have suffered big drops in the past month, as investors have cooled to renewable energy. Among the new investors in NRG Yield Inc (NYSE:NYLD) during the second quarter were billionaires Israel Englander and Ken Griffin, the former holding 2.18 million shares on June 30.

The energy theme continues, but we now move away from renewable energy to the old-fashioned kind: extracting it from the earth. Cheniere Energy, Inc. (NYSEMKT:LNG) operates a number of liquefied natural gas (LNG) terminals and pipelines, including production of the first LNG export facility to be built in the U.S in the past 40 years. Funds tracked by Insider Monkey owned 54.95% of its shares as of June 30, with 76 funds holding $9.00 billion in shares. Those totals were actually down over the quarter, from 81 and $9.75 billion respectively on March 31. However as shares declined by over 10% during the second quarter, we can see that there was not a collective selling of shares; funds in fact added slightly more shares to their coffers. Among them was billionaire Seth Klarman, who added 11% to his holding of Cheniere Energy, Inc. (NYSEMKT:LNG), his top energy stock pick. Klarman held 15.37 million shares valued at over $1.06 billion after the latest addition.

Lastly we come to Platform Specialty Products Corp (NYSE:PAH), which was held in the portfolios of 51 funds we track, up from 38 one quarter ago. The value of their holdings also increased slightly, to $2.62 billion, giving them a 53.05% stake in the company. The specialty chemicals company has also endured a rough third quarter, dipping by 19% so far. The stock is a recent addition to Daniel Och’s portfolio, and also resides in the portfolios of notable investors Bill Ackman, John Griffin, and Keith Meister. Ackman owns 42.74 million shares of Platform Specialty Products Corp (NYSE:PAH) valued at over $1.09 billion.

Interestingly, all five of the stocks on our list are down either slightly or greatly so far this quarter. Rather than take this as a sign of bad investments, we believe all of these stocks make for great buy-low candidates and should be considered as potential additions to investors’ portfolios.

Disclosure: None