Should You Buy Cheniere Energy Partners LP Holdings LLC (CQH)?

As one would reasonably expect, key hedge funds have jumped into Cheniere Energy Partners LP Holdings LLC (NYSEMKT:CQH) headfirst. Luminus Management, led by Jonathan Barrett and Paul Segal, assembled the largest position in Cheniere Energy Partners LP Holdings LLC (NYSEMKT:CQH). Luminus Management had $23.6 million invested in the company at the end of the quarter. Clint Carlson’s Carlson Capital also initiated a $9.3 million position during the quarter. The following funds were also among the new CQH investors: Howard Guberman’s Gruss Asset Management, Dmitry Balyasny’s Balyasny Asset Management, and John A. Levin’s Levin Capital Strategies.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Cheniere Energy Partners LP Holdings LLC (NYSEMKT:CQH) but similarly valued. We will take a look at Manpowergroup Inc (NYSE:MAN), Veeva Systems Inc (NYSE:VEEV), Erie Indemnity Company (NASDAQ:ERIE), and Blue Buffalo Pet Products Inc (NASDAQ:BUFF). This group of stocks’ market valuations are similar to CQH’s market valuation.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $268 million. That figure was $542 million in CQH’s case. Manpowergroup Inc (NYSE:MAN) is the most popular stock in this table. On the other hand Erie Indemnity Company (NASDAQ:ERIE) is the least popular one with only 9 bullish hedge fund positions. Cheniere Energy Partners LP Holdings LLC (NYSEMKT:CQH) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MAN might be a better candidate to consider taking a long position in.

Disclosure: None