Baupost Boosts Cheniere Energy Stake, Dumps Aveo Pharmaceuticals

Baupost Group, the hedge fund founded and managed by Seth Klarman increased its investment in Cheniere Energy based on its latest 13G filing with the Securities and Exchange Commission (SEC).

Based on the filing, Baupost Group currently owns more than 24.8 million shares or 10% of the outstanding shares of Cheniere Energy. The hedge fund previously held more than 11.19 million shares of the company.

Cheniere Energy is based Houston and it is primarily engaged in LNG-related businesses. The company is the owner and operator of the Sabine Pass LNG receiving terminal and Creole Trail Pipeline located in Louisiana.

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Last December, Cheniere Energy announced that its subsidiary Corpus Christi Liquefaction entered into an LNG sale and purchase agreement (SPA) with EDP Energias de Portugal S.A.

Under the agreement, EDP Energias agreed to purchase around 0.77 million tonnes per annum (mtpa) of LNG following the start of the operations of Train 3 of the LNG export facility (Corpus Christi Liquefaction Project). The facility is designed and permitted for up to three trains with a total design capacity of approximately 13.5 mtpa of LNG.

Cheniere Energy’s stock traded from $40.43to as much as $85 per share over the past 52-weeks. The stock still up more than 63% over the past year based on its closing price of $69.27 per share on Friday.

Why Baupost sold out stake in Aveo Pharmaceuticals

A separate filing showed that Baupost Group sold out its stake in Aveo Pharmaceuticals, a biopharmaceutical company engaged in the discovery, development and commercialization of targeted cancer treatments using Human Response Platforms.

Aveo Pharmaceuticals closed $0.93 per share on Thursday. The stock lost almost 50% of its stock value over the past year.

Baupost’s other recent investments

Bauspost Group also disclosed in December that it acquired a 12% stake in Paratek Pharmaceuticals, which is focused on the development and commercialization of omadacycline as a late-stage antibiotic company. Omadacycline is a broad-spectrum intravenous and oral once daily antibiotic candidate for serious community-acquired infections.

Baupost Group emphasized in its filing that its investment in Paratek Pharmaceuticals is not for the purpose of or with the effect of changing or influencing the control of the company’s shares.