A Look at Zach Schreiber’s Top Picks Ahead of His Ira Sohn Presentation

Even though Schreiber said it was shorting oil, it was long natural gas, particularly Cheniere Energy, Inc. (NYSEMKT:LNG). The energy sector amassed 14% of PointState’s equity portfolio at the end of 2015, and the stake in Cheniere, which contained 12.89 million shares worth $480.08 million, amassed 12% of the portfolio. PointState initiated a position in Cheniere during the fourth quarter of 2011 and has seen the stock surge by approximately 600%. Last year was marked by the involvement of activist Carl Icahn, who built a 13.8% stake in the company and pushed for the ousting of chairman and CEO Charif Souki. On the other hand, also last year, Jim Chanos said he was short Cheniere Energy, Inc. (NYSEMKT:LNG), because the company was investing in expanding its capacity in an environment marked by a decline in demand (Chanos is also scheduled to present at the Ira Sohn Conference). However, Cheniere Energy, Inc. (NYSEMKT:LNG) has recently launched the Sabine Pass terminal in Louisiana and has started exports of liquefied natural gas, which helped to offset the supply glut in the US. Investors are betting on gas prices to gain ground on the back of exports from Sabine Pass that are expected to increase demand.

On the third spot in PointState’s equity portfolio is Allergan plc (NYSE:AGN), in which the fund initiated a stake containing 1.04 million shares worth $326.09 million during the fourth quarter. The move coincided with Allergan and Pfizer Inc. (NYSE:PFE) announcing their $160 billion merger, which would have created the largest drug company in the world. However, earlier this month the companies terminated the deal due to new regulations from the US Department of Treasury on tax inversions, which made the deal less profitable. Even though the acquisition failed, Allergan plc (NYSE:AGN) remains a solid bet as a standalone company. Moreover, after it sells its generic drugs business to Teva, it can use the money to fund stock buybacks and acquire other companies to expand its portfolio of brands. Allergan plc (NYSE:AGN) was the most popular stock among the funds in our database at the end of 2015, with 159 investors reporting stakes equal to 18.10% of the company.