What Makes Venture Global (VG) a Prospective Investment Choice?

Sands Capital, an investment management company, released its “Sands Capital Select Growth Strategy” Q1 2025 investor letter. A copy of the letter can be downloaded here. Select Growth Strategy primarily targets U.S. companies that are leading the way in crucial areas of positive structural transformation within the economy. U.S. growth equities, tracked by the Russell 1000 Growth Index, experienced their poorest quarterly performance since 2022, significantly lagging behind U.S. value equities, represented by the Russell 1000 Value Index, in the widest gap observed since 2001. The strategy slightly underperformed the Russell 1000 Growth Index in the quarter. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its first-quarter 2025 investor letter, Sands Capital Select Growth Strategy highlighted stocks such as Venture Global, Inc. (NYSE:VG). Venture Global, Inc. (NYSE:VG) engages in the development, construction, and production of natural gas liquefaction and export projects. The one-month return of Venture Global, Inc. (NYSE:VG) was 35.32%. On May 30, 2025, Venture Global, Inc. (NYSE:VG) stock closed at $11.57 per share with a market capitalization of $27.998 billion.

Sands Capital Select Growth Strategy stated the following regarding Venture Global, Inc. (NYSE:VG) in its Q1 2025 investor letter:

“Venture Global, Inc. (NYSE:VG) specializes in the development and operation of liquefied natural gas (LNG) export facilities along the U.S. Gulf Coast. We believe natural gas demand is likely to continue growing over the next several decades as an abundant, affordable, reliable, highly scalable, and relatively clean energy source relative to other hydrocarbons. Given the fundamental mismatch between where the world’s largest and cheapest natural gas resources are located (primarily the United States and the Middle East) versus key areas of demand growth (Asia), we expect LNG demand to grow even faster while becoming increasingly critical from a global energy security perspective. Against this backdrop, we expect that Venture Global’s modular approach to facility development will enable the company to capture a disproportionate share of incremental demand. Its innovative approach meaningfully compresses construction timelines, reduces capital intensity and operating costs, and, we believe, facilitates a virtuous cycle that can allow for project cash flows to be generated and reinvested much faster and more effectively than for its peers. As a result, we see a runway for Venture Global to sustain above-average growth as it profitably expands its production over the next decade.”

Venture Global, Inc. (NYSE:VG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Venture Global, Inc. (NYSE:VG) at the end of the first quarter, which was 0 in the previous quarter. While we acknowledge the potential of Venture Global, Inc. (NYSE:VG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Venture Global, Inc. (NYSE:VG) and shared the list of natural-gas-players Jim Cramer commented on. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.