Paulson & Co. Increases Stake in Cheniere Energy

In a filing made with the SEC on Monday, hedge fund Paulson & Co. has disclosed that it now owns a 14.6% stake in Cheniere Energy (LNG). It now owns 7,400,000 shares, which is an increase from its previous 13F filing at the end of June, when it held 4,700,000 shares. Paulson & Co. is famous for making a fortune by betting against sub-prime when this whole mess began to unfold. And, it appears as if Paulson is still up to his fortune-making ways.

One of his funds has generated a 589% return, which could easily be up there amongst the largest returns by a single hedge fund in a year. Paulson's Advantage Plus fund has returned 19.44% year-to-date as of the end of August. This is the same fund that gained 158% the year prior and has grown to almost $9 billion. You can view more of its (and other hedge fund's) numbers in our most recent hedge fund performance update. Also, we recently saw that Paulson & Co. was shorting U.K. banks.

Taken from Google Finance:

Cheniere Energy (LNG) through its subsidiaries, is engaged primarily in the business of developing and constructing, and then owning and operating, a network of three onshore liquefied natural gas (LNG) receiving terminals and natural gas pipelines. The Company is developing a business to market LNG and natural gas primarily through its wholly owned subsidiary, Cheniere Marketing, Inc. (Cheniere Marketing). To a limited extent, Cheniere is also engaged in oil and natural gas exploration and development activities in the Gulf of Mexico. The Company has four business segments: LNG receiving terminal business, natural gas pipeline business, LNG and natural gas marketing business, and oil and gas exploration and development business.

Disclosure: None

Comments

[scfranklin94:]

The US won't need LNG in large amounts any time soon; I can't see a reason for buying Cheniere.

2008 Oct 29 08:04 AM

[Diegojames:]

The is a utility company working with Valero LNG receiving terminals in Texas so something is going on with importing for LNG......you might be missing a point ....I am long energy and have re entered Long Valero, CVX, XOM, OXY etc and some pipelines.

Diegojames

2008 Oct 29 08:55 AM

[Buck East:]

Is anyone building or planning LNG export terminals for all this domestic shale gas? I'm sure W. Europe would rather get gas from the States than from Gazprom.

2008 Oct 29 11:09 AM

[Paul Killinger:]

Some of you are missing the point perhaps. Importing and exporting LNG isn't what all this is about. The U.S. is awash in NG. The whole point is the coming use of LNG as a transportation fuel. (See the Pickens Plan.)

2008 Oct 29 11:31 AM

[fran:]

PAULK8756--

i understand the potential use for CNG/LNG for transportation. why would need for LNG receiving terminals become significant unless USA capacity is in question[which according to BOONE and AUBRY is not the case]. what am i missing?

2008 Oct 29 05:32 PM