Heartland Advisors, an investment management company, released its “Heartland Value Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund increased by 9.83% in the quarter compared to 10.15% for the Russell 2000 Value Index. Year-to-date the fund appreciated by 13.45% outperforming the 9.22% gain for the Index, primarily driven by security selection. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Heartland Value Fund highlighted stocks like New Gold Inc. (AMEX:NGD), in the third quarter 2024 investor letter. New Gold Inc. (AMEX:NGD) is a Canada-based intermediate gold mining company. The one-month return of New Gold Inc. (AMEX:NGD) was -6.56%, and its shares gained 159.09% of their value over the last 52 weeks. On October 14, 2024, New Gold Inc. (AMEX:NGD) stock closed at $2.85 per share with a market capitalization of $2.253 billion.
Heartland Value Fund stated the following regarding New Gold Inc. (AMEX:NGD) in its Q3 2024 investor letter:
“For example, our research indicated the outlook for New Gold Inc. (AMEX:NGD), a pure Canadian gold and copper producer, was steadily improving. NGD has met guidance for eight consecutive quarters, as both of its mines are hitting their production stride. The company is forecast to tap approximately 600,000 ounces of gold equivalent in FY2026, up 42% compared with last year’s output. Excellent drilling results coupled with better efficiencies have reduced New Gold’s all-in sustaining costs (AISC) to $1,381 per ounce of gold, down from a recent high of $1,657. The company is on track to slash AISC’s more than 50% by 2026.
Under new management headed by CEO Patrick Godin, who joined in 2022, NGD is enjoying financial flexibility that allows for exploration to grow reserves and extend the life of mines. The team continues to execute significantly increasing production, cutting costs, and posting exceptionally strong free cash flows. Our research process was validated by strong insider buying in the company. Yet despite doubling in value, NGD was priced at 8x our estimated 2025 earnings, less than 6.5x free cash flow and scored 8/10 on our research grid. We added to the position.”
Aerial view of an open mine with large cranes and excavators working on the surface.
New Gold Inc. (AMEX:NGD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held New Gold Inc. (AMEX:NGD) at the end of the second quarter which was 17 in the previous quarter. While we acknowledge the potential of New Gold Inc. (AMEX:NGD) 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 New Gold Inc. (AMEX:NGD) and shared the list of hot penny stocks to invest in according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.