L1 Capital, an investment management firm, released its “L1 Long Short Fund” first quarter 2024 investor letter, a copy of the same can be downloaded here. As U.S. economic data continued to surprise to the upside in comparison to market expectations, equity markets saw a gain throughout the March quarter. The portfolio returned 7.4% for the quarter compared to 5.3% for S&P/ASX 200 AI. Over the past three years, the portfolio return was 14.8% p.a compared to 9.6% p.a. for the index. Please check the top five holdings of the fund to know its best picks in 2024.
L1 Long Short Fund featured stocks like Cenovus Energy Inc. (NYSE:CVE) in the first quarter 2024 investor letter. Headquartered in Calgary, Canada, Cenovus Energy Inc. (NYSE:CVE) is an energy company that develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products. On April 16, 2024, Cenovus Energy Inc. (NYSE:CVE) stock closed at $20.63 per share. One-month return of Cenovus Energy Inc. (NYSE:CVE) was 7.28%, and its shares gained 16.09% of their value over the last 52 weeks. Cenovus Energy Inc. (NYSE:CVE) has a market capitalization of $38.609 billion.
L1 Long Short Fund stated the following regarding Cenovus Energy Inc. (NYSE:CVE) in its first quarter 2024 investor letter:
“Cenovus Energy Inc. (NYSE:CVE) (Long +20%) shares performed strongly as the WTI oil price increased 16% to ~US$83/bbl, while refining margins in the U.S. Midwest improved dramatically from a low base. During March, Cenovus’s 2024 investor day was well received, where its 5-year outlook for the business included growth in upstream production of around 150m bbl/d above the current 800m bbl/d and a material turnaround of its downstream refining business. Over the next five years, the company expects to generate C$32b of cumulative free cash flow based on a US$75/bbl WTI oil price, a highly attractive prospect given its current market cap of ~C$51b. Furthermore, it has committed to return 100% of excess cash flow back to investors once it reaches its C$4b net debt target (expected in 2024). Cenovus’s strong cash flow generation, combined with the long-life nature of its oil sands assets and its low cost of production, make it one of our preferred Energy exposures.”
A fleet of oil tankers at sea, representing the global reach of a crude oil supplier.
Cenovus Energy Inc. (NYSE:CVE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Cenovus Energy Inc. (NYSE:CVE) was held by 50 hedge fund portfolios, compared to 41 in the previous quarter, according to our database.
We previously discussed Cenovus Energy Inc. (NYSE:CVE) in another article, where we shared the list of ridiculously cheap stocks to buy now and hold for the long term. In addition, please check out our hedge fund investor letters Q1 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.
