Hedge Funds Are Dumping Cheniere Energy, Inc. (LNG)

Seeing as Cheniere Energy, Inc. (NYSEMKT:LNG) has experienced a declination in interest from the smart money, logic holds that there is a sect of hedgies that elected to cut their entire stakes by the end of the third quarter. It’s worth mentioning that Eric W. Mandelblatt’s Soroban Capital Partners said goodbye to the largest position of the “upper crust” of funds watched by Insider Monkey, totaling close to $361.7 million in stock, and Richard Perry’s Perry Capital was right behind this move, as the fund dumped about $226.2 million worth of shares. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 14 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to Cheniere Energy, Inc. (NYSEMKT:LNG). These stocks are Agilent Technologies Inc. (NYSE:A), Freescale Semiconductor Ltd (NYSE:FSL), TransDigm Group Incorporated (NYSE:TDG), and KB Financial Group, Inc. (ADR) (NYSE:KB). This group of stocks’ market values are closest to LNG’s market value.

As you can see these stocks had an average of 32.5 hedge funds with bullish positions and the average amount invested in these stocks was $1343 million. That figure was $7123 million in LNG’s case. TransDigm Group Incorporated (NYSE:TDG) is the most popular stock in this table. On the other hand KB Financial Group, Inc. (ADR) (NYSE:KB) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Cheniere Energy, Inc. (NYSEMKT:LNG) remains more popular among hedge funds, despite the Q3 drop in ownership. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.