Is Cheniere Energy Partners LP Holdings LLC (CQH) Going to Burn These Hedge Funds?

Since Cheniere Energy Partners LP Holdings LLC (NYSEMKT:CQH) has experienced a decline in interest from hedge fund managers, it’s safe to say that there lies a certain “tier” of hedge funds that slashed their entire stakes heading into Q4. Interestingly, Tom Sandell’s Sandell Asset Management dropped the largest stake of the “upper crust” of funds tracked by Insider Monkey, comprising an estimated $13.4 million in stock, and John Reilly’s South Ferry Capital Management was right behind this move, as the fund sold off about $3.2 million worth of shares. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks similar to Cheniere Energy Partners LP Holdings LLC (NYSEMKT:CQH). These stocks are Penske Automotive Group, Inc. (NYSE:PAG), Brown & Brown, Inc. (NYSE:BRO), GameStop Corp. (NYSE:GME), and Jabil Circuit, Inc. (NYSE:JBL). This group of stocks’ market values match CQH’s market value.

As you can see these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $354 million. That figure was $440 million in CQH’s case. GameStop Corp. (NYSE:GME) is the most popular stock in this table. On the other hand Brown & Brown, Inc. (NYSE:BRO) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Cheniere Energy Partners LP Holdings LLC (NYSEMKT:CQH) is even less popular than BRO. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.