Cheniere Energy, the Louisiana-based natural gas exporter-to-be, is off to a lousy start in 2016. And it's taking a bunch of big names — including Carl Icahn — down with it.
After 2015, when the stock lost roughly half its value, one would think some investors would quit trying to catch a falling knife. But it doesn't look like some of Cheniere's biggest backers last year are willing to cut their losses quite yet.
The two biggest hedge funds in Cheniere increased their position in the stock in late 2015. To begin this year, shares have pared another 20 percent of their value. Since he initiated his position in mid-2015, Icahn is likely to have incurred roughly $200 million in paper losses on his expanding investment.
"It's one of the most popular stocks with hedge funds in the energy sector," said Raymond James equity research analyst Pavel Molchanov. "It definitely polarizes the investment community."
Baupost Group, which rarely reports a losing year, had a loss in 2015 largely due to its energy investments. But it's not keeping Baupost founder Seth Klarman from investing in Cheniere; in fact, he doubled down after losing on the natural gas company in 2015.
