Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, recently released its Q1 2021 Investor Letter, a copy of which you can download here. The fund posted a return of 18.22% for the quarter, outperforming its benchmark, the S&P 500 Index which returned 6.18% in the same quarter. You should check out Longleaf Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q1 2021 Investor Letter, the fund highlighted a few stocks and CNX Resources Corp (NYSE:CNX) is one of them. CNX Resources Corp (NYSE:CNX) is a natural gas company. In the last three months, CNX Resources Corp (NYSE:CNX) stock gained 4.6% and on April 19th it had a closing price of $13.80. Here is what the fund said:
“CNX Resources (36%, 1.86%), the Appalachian natural gas company, was another top contributor. The company earned $85 million FCF in the fourth quarter and used the profits to pay down debt and repurchase shares at a 7% annualized pace. 2021 and 2022 production is hedged at solid prices, and the company has guided to a growing $1.90 per share FCF coupon in the near term. The stock trades under 8x FCF before adjusting for farther off undeveloped acreage and the company’s pipeline infrastructure. CNX is the lowest-cost producer in the region and its PDP decline rate continues to improve, meaning it can maintain or grow future production without spending heavily. Encouragingly, CNX announced meaningful progress in its ESG initiatives in the quarter, including its commitment to transparent reporting through its adoption of Climate-Related Financial Disclosure (TCFD) and the Sustainability Accounting Standards Board (SASB) disclosure standards. We have engaged with CNX leadership on this topic over the last several years and have encouraged them to commit to these leading industry standard disclosure frameworks. Additionally, the company formed a dedicated working group focused on future emissions reduction and approved a performance measure program that ties executive compensation to meeting targeted methane emissions reduction thresholds over a three-year period.”
Longleaf Partners has been a long time CNX Resources Corp (NYSE:CNX) bull. In March 2021, we shared Longleaf Partners’ bullish CNX’s thesis in this article.
Our calculations showed that CNX Resources Corp (NYSE:CNX) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.
