5 Stocks Billionaire Tiger Cub Rob Citrone is Buying

3. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)

Value of Discovery Capital Management‘s 13F Position: $12.5 million

Number of Hedge Fund Shareholders: 28

Rob Citrone appears to have made another bet on green energy during Q1, this time in the form of lithium miner Sociedad Química y Minera de Chile S.A. (NYSE:SQM). Discovery Capital bought 146,600 shares of SQM during the first quarter, shares which have gained an impressive 67% year-to-date. Just eight hedge funds were long SQM less than three years ago, a figure that has since jumped to 28.

Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is well positioned to take advantage of skyrocketing lithium prices, which are off their record highs of April by about 20% but are still trading more than 6x higher now than they were the start of the year, at $62,000 per metric tonne. The majority of the company’s 2022 volumes are exposed to either spot prices or monthly benchmarks.

Sociedad Química y Minera de Chile S.A. (NYSE:SQM) has also teased the possibility of expanding its lithium capacity, which could further entice hedge funds and other investors. The only near-term concern for the company may be the lockdowns in China, which could have an impact on its Q2 volumes. 42% of SQM’s lithium shipments during the 12-month period ended October 31, 2020 went to China.