5 Stocks to Sell Now According to Billionaire David Tepper

1. Freeport-McMoRan Inc. (NYSE:FCX)

Number of Hedge Fund Holders: 56

Freeport-McMoRan Inc. (NYSE:FCX) is an American mining company. It is the world’s largest producer of molybdenum and operates the world’s largest gold mine. Moreover, the company also has interests in copper.

Freeport-McMoRan Inc. (NYSE:FCX)’s profitability has been significantly affected by the declining prices. In the second quarter, the company revenue showed a 5.7% decline while the gross margins lagged by 3.6% on a YoY basis. Moreover, the net income of $840 million represented a 15.5% decline, and the net margins were around 22% below the Q2 2021 levels. However, Freeport-McMoRan Inc. (NYSE:FCX) expects a 4-year CAGR to be 2.12% while expecting a decline of 4.41% in net income over the same period.

Freeport-McMoRan Inc. (NYSE:FCX) was added to Appaloosa Management’s portfolio in Q4 2020 and was sold off completely in Q2 2022. In the quarter, hedge funds showed a bearish sentiment towards the company. At the end of Q2 2022, 56 hedge funds had a stake in the company, valued at around $2.5 billion, compared to 68 hedge funds in the previous quarter, with a combined stake value of $4.1 billion.

Here is what Carillon Tower Advisers had to say about Freeport-McMoRan Inc. (NYSE:FCX) in its Q1 2022 investor letter:

“Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Copper and gold producer Freeport- McMoRan (NYSE:FCX) rose as copper prices remained strong due to supply shortages and growing use in renewable energy systems and electric vehicles.”

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