Cheniere Energy, Inc. (NYSEMKT:LNG) is up by 1.95% this afternoon after analysts at Citigroup reiterated their ‘Buy’ rating on the stock and maintained their $47 price target on it. The analysts believe that new CEO Jack Fusco will lay out a plan as to exactly when the company will become profitable and when Cheniere Energy will begin sharing its cash flow to shareholders. The analysts also think the company’s marketing entity existing contracts through 2018 provide the market with some potential visibility as to Cheniere’s intermediate-term cash flows. Cheniere Energy, Inc. (NYSEMKT:LNG) shares have been a victim of the LNG downturn and the company needs to prove to the market that exporting gas from the U.S will be profitable in the long run.
At Insider Monkey we track the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost, and Third Point because we determined that some of the stocks that they are collectively bullish on can help us generate returns above the broader indices. Out of thousands of stocks that hedge funds invest in, small-caps can provide the best returns over the long term due to the fact that these companies are less efficiently priced and are usually under the radars of mass-media, analysts and dumb money. This is why we follow the smart money moves in the small-cap space.
Cheniere Energy, Inc. (NYSEMKT:LNG) investors should be aware of a decrease in hedge fund interest recently. At the end of the first quarter, a total of 49 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 9% drop from the end of the fourth quarter of 2015. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Sabre Corp (NASDAQ:SABR), Waste Connections, Inc. (NYSE:WCN), and ANSYS, Inc. (NASDAQ:ANSS) to gather more data points.
Of the funds tracked by Insider Monkey, Carl Icahn’s Icahn Capital LP has the most valuable position in Cheniere Energy, Inc. (NYSEMKT:LNG), worth close to $1.11 billion, comprising 5.1% of its total 13F portfolio. The second largest stake is held by Baupost Group, led by Seth Klarman, holding a $1.01 billion position; 14.6% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism comprise Stephen Mandel’s Lone Pine Capital, Michael Lowenstein’s Kensico Capital, and David Gallo’s Valinor Management LLC.
On the next page we’ll look at some funds that sold off positions in Cheniere during Q1, as well as compare the stock to a handful of others with similar market caps.