Undoubtedly Carl Icahn (Trades, Portfolio) is one of the best investors in the world. He founded Icahn Capital LP, which had about $32 billion under management. The investor reported initiating a new stake in Cheniere Energy Inc. (LNG, Financial), a $16.48 billion market cap, according to GuruFocus Real Time Picks.
New position
The 13D filling revealed that Icahn purchased 19,353,530 shares of the company at an average price of $70.35. The stake represents 8.18% of its outstanding common stock.
This makes Icahn the largest investor in Cheniere, trailed by Andreas Halvorsen (Trades, Portfolio)’s Viking Global Investors, which holds 15,447,556 shares of the company; Seth Klarman (Trades, Portfolio)’s Baupost Group with 13,807,230 shares and Stephen Mandel’s Lone Pine Capital which owns 8,018,486 shares.
Cheniere is an energy company engaged in the liquefied natural gas (LNG, Financial) related business. It operates through two segments: LNG Terminal Business, and LNG and Natural Gas Marketing Business. The energy firm has an aggressive expansion program and is focusing on increasing its export capacity. Further, it has revealed plans to expand its Corpus Christi terminal as well as some projects in Louisiana.
Cheniere Energy’s shares lost 0.77% in a year-to-date basis and lost 1.7% in the past 12 months. But in the past month shares rose by more than 6%, so Icahn´s move likely pushed the price higher.
Several losses
As of today, the firm's share price is $69.54 and is close to a one-year low. The firm's revenue per share for the trailing 12 months ended in June was $1.19. Hence, Cheniere Energy's P/S ratio for today is 59.37 and is close to one-year low of 53.82. This is in line with the reporting purpose of the filling. The positions in the shares were taken in the belief that they were undervalued. Further, Icahn thinks the energy sector is promising for the future. This is the reason why Icahn is still bullish on energy stocks. Despite this, the hedge fund manager lost with long positions in Talisman Energy (TLM, Financial), Seventy Seven Energy (SSE, Financial), Transocean (RIG, Financial) and Chesapeake Energy (CHK, Financial).
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Disclosure: As of this writing, Omar Venerio did not hold a position in any of the aforementioned securities.
