Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. 2025 got out to a solid start with the market hitting all-time highs in mid-February. However, a dramatic reversal pushed the S&P 500 down 8.7%, closing the quarter down 4.3%. During the quarter, the strategy returned -9.5% net of fees compared to the S&P 500’s -4.3% return. According to a three-factor performance attribution model, allocation and interaction effects contributed positively to the portfolio’s performance, which were partially offset by selection effects. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Patient Capital Opportunity Equity Strategy highlighted stocks such as New Fortress Energy Inc. (NASDAQ:NFE). New Fortress Energy Inc. (NASDAQ:NFE) is an integrated gas-to-power energy infrastructure company. The one-month return of New Fortress Energy Inc. (NASDAQ:NFE) was -43.75%, and its shares lost 80.84% of their value over the last 52 weeks. On April 23, 2025, New Fortress Energy Inc. (NASDAQ:NFE) stock closed at $5.22 per share with a market capitalization of $1.429 billion.
Patient Capital Opportunity Equity Strategy stated the following regarding New Fortress Energy Inc. (NASDAQ:NFE) in its Q1 2025 investor letter:
“We initiated a position in New Fortress Energy Inc. (NASDAQ:NFE), a vertically integrated LNG infrastructure company with strategic import terminals across high-growth markets including Jamaica, Puerto Rico, Mexico, Nicaragua, and Brazil. As these countries increasingly adopt LNG as a transition fuel, replacing more expensive oil and coal, New Fortress is well-positioned to benefit. The stock has been highly pressured by an overleveraged balance sheet and continued investment to complete projects. CEO, Wes Edens, who serves as co-CEO of Fortress Investment Group, is the company’s largest shareholder, creating strong alignment with shareholders. Given management’s private equity background, debt refinancings and asset sales, we expect the company to deleverage over the coming years. We think the stock has the potential to be a multi-bagger from current levels if they execute well.”
A cutaway view of a modern energy infrastructure and its power generation facilities.
New Fortress Energy Inc. (NASDAQ:NFE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held New Fortress Energy Inc. (NASDAQ:NFE) at the end of the fourth quarter, compared to 17 in the third quarter. While we acknowledge the potential of New Fortress Energy Inc. (NASDAQ:NFE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we covered New Fortress Energy Inc. (NASDAQ:NFE) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q1 2025 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.