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Fidelity Management & Research Adds a Position in Cheniere Energy

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Recent institutional activity in LNG

The number of institutional holders in Cheniere Energy (LNG) increased to 577 by the end of the fourth quarter—compared to 540 in the previous quarter. The percentage of shares held by institutional investors rose to 97.2% from 93.5% during the same period. Fidelity Management & Research and PointState Capital were the biggest buyers in Cheniere Energy during the last quarter. They added 6.10 million and 4.97 million shares, respectively. Among the top institutional holders, 10.89 million positions were added, which indicates bullish sentiment in Cheniere Energy.

Lone Pine Capital unloaded a major position in Cheniere Energy in the fourth quarter. Lone Pine Capital sold 5.19 million LNG shares. The investment manager has sold more than 10.0 million Cheniere Energy shares in the last two quarters.

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Why are institutional investors bullish on LNG?

Institutional investors’ bullishness towards LNG could be attributed to the following factors:

  • Timely completion of LNG Trains at Sabine Pass. Recently, Cheniere Energy Partners (CQP) started the operation of Train 4 at Sabine Pass.
  • A strong increase in LNG demand from Asian markets—particularly China
  • Cheniere Energy plans to expand its liquefaction capacity through mid-scale LNG projects at Corpus Christi.
  • Recent SPAs have taken Cheniere Energy a step closer to Train 3 at Corpus Christi.

Top five holders

Icahn Associates, Baupost, Vanguard, Fidelity Management & Research Company, and Kensico Capital Management are among the top five institutional holders in Cheniere Energy. Icahn Associates, the firm promoted by well-known activist investor Carl Icahn, continued to be the top holder in Cheniere Energy. Icahn Associates holds 13.8% in Cheniere Energy.

Next, we’ll discuss analysts’ recommendations for Cheniere Energy.

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