Vltava Fund, a global investment fund, released its second quarter 2022 investor letter. A copy of the same can be downloaded here. The letter discussed oil prices and their effects on the fund’s portfolio performance. The historical data shows that through the end of 2021, the prices of the shares in the portfolio increased by nearly 60%. After a dip in 2018 and covid collapse in 2020, the portfolio experienced rapid growth. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Vltava Fund discussed stocks like Cenovus Energy Inc. (NYSE:CVE) in the second quarter investor letter. Headquartered in Calgary, Canada, Cenovus Energy Inc. (NYSE:CVE) is an energy company, that produces, develops, and markets natural gas, crude oil, and natural gas liquids. September 16, 2022, Cenovus Energy Inc. (NYSE:CVE) stock closed at $18.54 per share. One-month return of Cenovus Energy Inc. (NYSE:CVE) was 1.92% and its shares gained 113.84% of their value over the last 52 weeks. Cenovus Energy Inc. (NYSE:CVE) has a market capitalization of $35.817 billion.
Here is what Vltava Fund specifically said about Cenovus Energy Inc. (NYSE:CVE) in its Q2 2022 investor letter:
“We bought shares in Cenovus Energy Inc. (NYSE:CVE). This marks the first time in 10 years that an oil producing company has appeared in the Vltava Fund portfolio. Cenovus is a Canadian integrated gas and oil company based in Calgary. It is Canada’s third-largest producer of crude oil and natural gas, the country’s second-largest refiner, and it combines high-quality and low-cost assets in the oil sands segment and heavy oil with extensive downstream infrastructure.
Investment in this sector is not at all easy. It is a cyclical industry where it is not easy to build a competitive advantage. The investment horizons are long and companies often work with large debt. Many companies face problems creating sufficient free cash flow in the long term. Our experience leads us to the view that it is necessary to give preference to companies that already today are producing at high levels so that they immediately can take advantage of the strong oil prices and need not rely on capacity that will be brought online only in the future. Such a company should have reasonable operating costs, low debt, and very long-term reserves the development of which need not swallow up all the profits that are generated. In our opinion, Cenovus Energy offers all of this and it also has a very shareholder-friendly capital allocation.”
Cenovus Energy Inc. (NYSE:CVE) is in not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Cenovus Energy Inc. (NYSE:CVE) at the end of the second quarter which was 44 in the previous quarter.
We discussed Cenovus Energy Inc. (NYSE:CVE) in another article and shared the list of best-performing energy stocks for 2022. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
