market folly

In a filing made with the SEC yesterday, hedge fund Paulson & Co has disclosed they now own a 14.6% stake in Cheniere Energy (LNG). They now own 7,400,000 shares. This is an increase from their previous 13F filing at the end of June, when they 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 their (and other hedge fund's) numbers in our most recent hedge fund performance update. Also, we recently saw that Paulson & Co was shorting UK 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."