Is it a Wise Decision to Establish a NOV Position?

Heartland Advisors, an investment management firm, published its “Heartland Mid Cap Value Fund” second-quarter 2022 investor letter – a copy of which can be downloaded here. The Russell Mid Cap® Value Index was down for the quarter and the first half of the year, but it beat the S&P 500 and significantly outperformed the Russell Mid Cap Growth index over each timeframe. The Heartland Mid Cap Value Strategy, meanwhile, outperformed the Russell Mid Cap® Value Index in Q2 and on a year-to-date basis. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Heartland Mid Cap Value Fund mentioned NOV Inc. (NYSE:NOV) and explained its insights for the company. Founded in 1841, NOV Inc. (NYSE:NOV) is a Houston, Texas-based pumps and pumping equipment company with a $5.8 billion market capitalization. NOV Inc. (NYSE:NOV) delivered a 9.08% return since the beginning of the year, while its 12-month returns are up by 8.92%. The stock closed at $14.78 per share on July 22, 2022.

Here is what Heartland Mid Cap Value Fund has to say about NOV Inc. (NYSE:NOV) in its Q2 2022 investor letter:

“Alternatively, some areas that have performed well recently could see their growth trajectory begin to level off. For instance, Energy has been one of the best performing sectors in the portfolio, a beneficiary of rising oil prices, but we exited our position in one name in this space given opportunities emerging elsewhere. There is some concern that if the Federal Reserve pushes the economy near or into a recession that Energy stocks could lose some steam. However, energy services companies, such as NOV Inc. (NYSE:NOV), are better positioned even if demand begins to wane, given years of underinvestment in global oil and gas production.”

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Our calculations show that NOV Inc. (NYSE:NOV) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. NOV Inc. (NYSE:NOV) was in 26 hedge fund portfolios at the end of the second quarter of 2022, compared to 26 funds in the previous quarter. NOV Inc. (NYSE:NOV) delivered a -22.29% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on NOV Inc. (NYSE:NOV) 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.