Should You Increase Your holdings in Cheniere Energy (LNG)?

TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the strategy returned -1.35% (gross) and -1.56% (net) compared to 8.14% for the Russell Midcap Growth Index. In the fourth quarter, the U.S. small to mid-cap growth equities with the greatest valuation (P/E), lowest quality (return on equity), or highest risk (beta or volatility) provided the strongest gains. In this environment, the portfolio's fourth-quarter performance fell short of the Russell Midcap® Growth Index, resulting in poor performance for the year. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, TimesSquare Capital Management U.S. Focus Growth Strategy emphasized stocks such as Cheniere Energy, Inc. (NYSE:LNG). Cheniere Energy, Inc. (NYSE:LNG) is an energy infrastructure company, that primarily focuses on liquefied natural gas (LNG) related businesses. The one-month return of Cheniere Energy, Inc. (NYSE:LNG) was -0.06%, and its shares gained 40.39% of their value over the last 52 weeks. On April 3, 2025, Cheniere Energy, Inc. (NYSE:LNG) stock closed at $220.07 per share with a market capitalization of $49.22 billion.

TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding Cheniere Energy, Inc. (NYSE:LNG) in its Q4 2024 investor letter:

"We often see the ebb and flow of the Energy sector tied to underlying commodity prices. In this area, we seek low-cost exploration & production companies with high-yielding acreage or specialized service providers. Cheniere Energy, Inc. (NYSE:LNG), an operator of liquefied natural gas terminals in New Orleans and Corpus Christi, gushed by 20%. Solid third quarter results included a beat to profit projections and increased forward guidance. Higher production and optimization efforts were drivers of the upside. We added to the position as our conviction level increased."

Cheniere Energy, Inc. (NYSE:LNG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held Cheniere Energy, Inc. (NYSE:LNG) at the end of the fourth quarter compared to 62 in the third quarter. While we acknowledge the potential of Cheniere Energy, Inc. (NYSE:LNG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We covered Cheniere Energy, Inc. (NYSE:LNG) in another article, where we shared the list of best LNG and LNG shipping stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.