Cheniere Energy, Inc. (NYSEAMEX:LNG) has experienced an increase in support from the world's most elite money managers recently.
At the moment, there are tons of indicators market participants can use to track their holdings. Two of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best hedge fund managers can outclass the broader indices by a significant amount (see just how much).
Just as important, positive insider trading activity is another way to parse down the world of equities. There are a variety of motivations for an upper level exec to cut shares of his or her company, but just one, very obvious reason why they would behave bullishly. Plenty of empirical studies have demonstrated the impressive potential of this strategy if shareholders know what to do (learn more here).
Consequently, we're going to take a peek at the recent action surrounding Cheniere Energy, Inc. (NYSEAMEX:LNG).
At year's end, a total of 31 of the hedge funds we track held long positions in this stock, a change of 3% from the third quarter. With hedge funds' sentiment swirling, there exists a select group of key hedge fund managers who were upping their stakes meaningfully.
Of the funds we track, Sean Cullinan's Point State Capital had the largest position in Cheniere Energy, Inc. (NYSEAMEX:LNG), worth close to $257 million, accounting for 3.9% of its total 13F portfolio. On Point State Capital's heels is Orbis Investment Management, managed by William B. Gray, which held a $166 million position; the fund has 1.7% of its 13F portfolio invested in the stock. Other peers that hold long positions include Phill Gross and Robert Atchinson's Adage Capital Management, Dan Loeb's Third Point and Alec Litowitz and Ross Laser's Magnetar Capital.
As aggregate interest increased, some big names have jumped into Cheniere Energy, Inc. (NYSEAMEX:LNG) headfirst. Third Point, managed by Dan Loeb, initiated the largest position in Cheniere Energy, Inc. (NYSEAMEX:LNG). Third Point had 75 million invested in the company at the end of the quarter. James Crichton and Adam Weiss's Scout Capital Management also initiated a $56 million position during the quarter. The other funds with new positions in the stock are John Kleinheinz's Kleinheinz Capital Partners, Keith Meister's Corvex Capital, and Louis Bacon's Moore Global Investments.
Insider buying is best served when the company in focus has experienced transactions within the past half-year. Over the latest half-year time frame, Cheniere Energy, Inc. (NYSEAMEX:LNG) has seen zero unique insiders buying, and 12 insider sales (see the details of insider trades here).
With the results shown by our strategies, everyday investors must always pay attention to hedge fund and insider trading activity, and Cheniere Energy, Inc. (NYSEAMEX:LNG) applies perfectly to this mantra.
Insider Monkey's small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.