John Paulson Reduces Cheniere Energy (LNG) Stake ~ market folly

Monday, November 29, 2010

John Paulson Reduces Cheniere Energy (LNG) Stake

John Paulson's hedge fund firm Paulson & Co has filed an amended 13D with the SEC regarding Cheniere Energy (LNG). Due to portfolio activity on November 22nd through 24th, Paulson has disclosed a 7.3% ownership stake in LNG with 4,209,985 shares. This is a reduction in their stake as they owned 7,461,191 shares back on September 30th at the end of the third quarter.

In the past two months, Paulson has sold 43.5% of its position. The hedge fund firm sold the bulk of the shares at prices of $6.4809 and $6.3208 per share. So while the famed manager has axed his position almost in half, he does still own shares. Keep in mind that you can see the rest of Paulson's latest investments in the just released issue of our newsletter. Additionally, the issue examines the investment thesis of a position Paulson was buying in the quarter. You can check out our latest issue here.

Taken from Google Finance, Cheniere Energy is "an energy company primarily engaged in liquefied natural gas (LNG)-related businesses. The Company owns and operates the Sabine Pass LNG receiving terminal in Louisiana through its 90.6% ownership interest in and management agreements with Cheniere Energy Partners, L.P. (Cheniere Partners). It also owns and operates the Creole Trail Pipeline, which interconnects the Sabine Pass LNG receiving terminal with downstream markets."

Lastly, in other recent commentary from Paulson, he recently said to buy stocks and sell bonds.

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