Seth Klarman’s Hedge Fund Increases Its Shares in Cheniere Energy, Inc.
Seth Klarman’s hedge fund founded in 1982 Baupost Group has increased its shares in Cheniere Energy, Inc., a provider of information on liquefied natural gas, US energy demand, and how LNG can help to safely diversify and expand our energy supply, by 24,807,230 share, or more than double the 11,199,030 share valued at $775+ million USD they owned as per their Q3 2014 13F filing.
This
stock holding is worth at today’s prices $1.7+ billion USD which is
about 6% of the whole Baupost Group fund’s AUM ($28+ billion)! This is a
pretty focused and enormous bet and probably indicates that Seth
Klarman is still bullish on the company and its future.
Cheniere
Energy is in a monster trend, as it has increased more than 15 times in
the last few years. Even though the trend has cooled a little, probably
due to the oil crash fiasco, Seth Klarman is probably using the
correction to add to the fund’s position in the company at better
prices. The $16 billion dollars Cheniere Energy now has Baupost Group as
shareholder of 10%+ of the shares outstanding.
The
company is active also in the debt market as it completed a planned
debt increase of $11.5 billion to finish its Corpus Christi export
facility with a production capacity of 13.5 million tons per year. A
total of 18 financial institutions were approached for the debt raising
and it was completed successfully. This also shows trust in the company
from many leading banks.
Source: OctaFinance.com
