Is it a Good Time to Exit Your Warrior Met Coal (HCC) Stake?

Horos Asset Management, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. Since the inception of Horos (May 21, 2018), Horos Value Internacional has returned 22.3%, below the 55.2% gain of its benchmark, while Horos Value Iberia has returned 8.1%, outperforming the 0.5% return of its index. Moreover, since 2012, the returns of this management team stand at 199% for the international strategy and 167% for the Iberian strategy, compared to 219% and 67% in their benchmark indices, respectively.  Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Horos Asset Management mentioned Warrior Met Coal, Inc. (NYSE:HCC) and explained its insights for the company. Founded in 2015, Warrior Met Coal, Inc. (NYSE:HCC) is an Alabama, United States-based metallurgical coal producer, and exporter with a $1.7 billion market capitalization. Warrior Met Coal, Inc. (NYSE:HCC) delivered a 28.32% return since the beginning of the year, while its 12-month returns are up by 92.59%. The stock closed at $32.99 per share on June 27, 2022.

Here is what Horos Asset Management has to say about Warrior Met Coal, Inc. (NYSE:HCC) in its Q1 2022 investor letter:

“Among others, we can highlight that at Horos Value Internacional we exited our position in the metallurgical coal producer Warrior Met Coal, following the strong performance of its stock. Meanwhile, although with somewhat different dynamics, our investment in the metallurgical coal company Warrior Met Coal also had strong returns and we sold it during the period. The reason is purely due to its lower upside potential after a very strong performance.”

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Our calculations show that Warrior Met Coal, Inc. (NYSE:HCC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Warrior Met Coal, Inc. (NYSE:HCC) was in 31 hedge fund portfolios at the end of the first quarter of 2022, compared to 31 funds in the previous quarter. Warrior Met Coal, Inc. (NYSE:HCC) delivered a -12.21% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on Warrior Met Coal, Inc. (NYSE:HCC) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.