Hedge Funds Are Obesely Overweight These 5 Mid-caps

#3 Cheniere Energy, Inc. (NYSEMKT:LNG)

– Number of Hedge Fund Shareholders (as of June 30): 42
– Total Value of Hedge Funds’ Holdings (as of June 30): $4.51 billion
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 51.00%

Although LNG prices are still sharply lower than what they were two years ago and the industry is still in oversupply, Cheniere Energy, Inc. (NYSEMKT:LNG) has rallied sharply from its February lows. Helping shares rise are rebounding crude prices, which indirectly help lift LNG prices in many contracts. The stock is also in a strong uptrend, with the current price resting above several key moving averages. Several smart money funds in our system own a lot of Cheniere’s stock, including Icahn Capital with over 32 million shares and Seth Klarman‘s Baupost Group, which reported owning a 29.8 million-share stake as of the end of June.

#2 Jazz Pharmaceuticals plc – Ordinary Shares (NASDAQ:JAZZ)

– Number of Hedge Fund Shareholders (as of June 30): 46
– Total Value of Hedge Funds’ Holdings (as of June 30): $4.38 billion
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 51.30%

With 46 funds that we track accounting for 51.3% of the float, Jazz Pharmaceuticals plc – Ordinary Shares (NASDAQ:JAZZ) is a smart money favorite. In May, Jazz Pharma pulled the trigger on the $1.5 billion purchase of Celator Pharmaceuticals, whose promising Vyxeos treatment could help patients with certain forms of leukemia live longer. Although Jazz paid a big premium for Celator, analysts are optimistic on the deal and on Jazz in general. They have an average target price of $186.20 per share on it, suggesting that the stock has almost 50% upside.

#1 Liberty Broadband Corp (NASDAQ:LBRDK)

– Number of Hedge Fund Shareholders (as of June 30): 43
– Total Value of Hedge Funds’ Holdings (as of June 30): $3.52 billion
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 56.70%

43 funds tracked by Insider Monkey owned 56.7% of Liberty Broadband Corp (NASDAQ:LBRDK)’s float at the end of the second quarter, up by four funds from the end of March. In May, Liberty Broadband completed its $5 billion investment in Charter Communications, Inc. (NASDAQ:CHTR), to help with that companies acquisitions of Time Warner Cable and Bright House Networks. Liberty Broadband funded the investment in part through the sale of $4.4 billion of newly-issued shares at a fixed price of $56.23 per share, some of which were bought by funds in our database, including Barry Rosenstein’s JANA Partners, Philippe Laffont’s Coatue Management, and Eric Mandelblatt’s Soroban Capital Partners. Shares of Liberty Broadband have since rallied to $68.13 per share, in part due to the strong economy and optimism on the various synergies that could be unlocked from the three-way Charter deal, which would also increase Liberty Broadband’s value as that company’s largest shareholder.

Disclosure: None