Here’s Why Vltava Fund Sold its Teekay LNG Partners (TGP) Stake

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Vltava Fund, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. In its Q4 2021 investor letter, Vltava Fund described 2021 as a year of very strong growth in profitability among the companies they own in their portfolio, as the profits of the companies they hold grew even faster than did the Fund’s NAV. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Vltava Fund, in its Q4 2021 investor letter, mentioned Teekay LNG Partners L.P. (NYSE: TGP) and discussed its stance on the firm. Teekay LNG Partners L.P. is a Bermuda-based marine energy transportation, storage & production company with a $1.4 billion market capitalization. TGP delivered a 0.35% return since the beginning of the year, while its 12-month returns are up by 36.47%. The stock closed at $16.99 per share on January 07, 2022.

Here is what Vltava Fund has to say about Teekay LNG Partners L.P. in its Q4 2021 investor letter:

“In the final quarter of the year, we sold quite against our will both common and preference shares of Teekay LNG Partners (TGP). I say against our will because in January TGP will be taken over by a private equity fund and its shares will be withdrawn from trading on a stock exchange. Transactions of this sort happen from time to time, and this is nothing unusual. What we find disagreeable in this case is the price at which the takeover is taking place. In our opinion, the USD 17 price is far below the value and potential of the company, and we are racking our brains to understand what motivated the main shareholder, who controlled more than 40% of TGP shares, to sell at such a price. TGP was a solidly profitable investment for us. Nevertheless, we had expected to earn much more from it through coming years. Fortunately, it is not a problem at the moment to find a good place in the market for the cash obtained from the sale of TGP.”

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Based on our calculations, Teekay LNG Partners L.P. (NYSE: TGP) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. TGP was in 10 hedge fund portfolios at the end of the third quarter of 2021, compared to 9 funds in the previous quarter. Teekay LNG Partners L.P. (NYSE: TGP) delivered a -0.82% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on TGP in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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