L1 Capital, an investment management firm, released its “L1 Long Short Fund” second quarter 2024 investor letter. Over the quarter, global markets were mixed, with several themes impacting key markets. A copy of the letter can be downloaded here. The portfolio returned 0.7% for the quarter compared to (1.1%) for S&P/ASX 200 AI. Year-to-date the portfolio returned 8.2% compared to 4.2% for the index. Over the past three years, the portfolio return was 11.9% p.a compared to 6.4% p.a. for the index. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
L1 Long Short Fund highlighted stocks like Hudbay Minerals Inc. (NYSE:HBM), in the second quarter 2024 investor letter. Hudbay Minerals Inc. (NYSE:HBM) is a diversified mining company. The one-month return of Hudbay Minerals Inc. (NYSE:HBM) was 0.00%, and its shares gained 62.92% of their value over the last 52 weeks. On July 17, 2024, Hudbay Minerals Inc. (NYSE:HBM) stock closed at $8.70 per share with a market capitalization of $3.437 billion.
L1 Long Short Fund stated the following regarding Hudbay Minerals Inc. (NYSE:HBM) in its Q2 2024 investor letter:
“Hudbay Minerals Inc. (NYSE:HBM) (Long +31%) shares rallied over the quarter driven by rising copper and gold prices, as well as strong production results. The company’s first quarter results showed higher gold production and robust operating performance at both its major assets, which exceeded consensus expectations. In addition, the company announced a ~US$400m equity raise to support balance sheet de-leveraging and fund its key growth projects. Hudbay is a mid-tier mining company primarily producing copper, alongside gold and zinc, with its key assets located in Canada and Peru. We are attracted to Hudbay due to our positive medium-term outlook for copper and the company’s strong near-term free cash flow generation. This cash generation potential will allow the company to de-lever and recycle capital back into its highly prospective exploration program and major growth projects, most notably its Copper World project in Arizona.”
An aerial view of a copper mine, showing the intricate workings of heavy machinery.
Hudbay Minerals Inc. (NYSE:HBM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Hudbay Minerals Inc. (NYSE:HBM) at the end of the first quarter which was 26 in the previous quarter. Hudbay Minerals Inc. (NYSE:HBM) generated sustained free cash flow, continued debt reduction, and demonstrated solid operational and financial performance in the first quarter (see the details here). While we acknowledge the potential of Hudbay Minerals Inc. (NYSE:HBM) 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 discussed Hudbay Minerals Inc. (NYSE:HBM) and shared the list of best copper stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
