L1 Capital, an investment management firm, released its “L1 Long Short Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. Over the quarter, global markets were mixed, with several themes impacting important markets. 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. Please check the fund’s top five holdings to know its best picks in 2024.
L1 Long Short Fund highlighted stocks like Newmont Corporation (NYSE:NEM), in the second quarter 2024 investor letter. Newmont Corporation (NYSE:NEM) engages in the production and exploration of gold. The one-month return of Newmont Corporation (NYSE:NEM) was 15.51%, and its shares gained 6.84% of their value over the last 52 weeks. On July 17, 2024, Newmont Corporation (NYSE:NEM) stock closed at $48.27 per share with a market capitalization of $55.662 billion.
L1 Long Short Fund stated the following regarding Newmont Corporation (NYSE:NEM) in its Q2 2024 investor letter:
“Newmont Corporation (NYSE:NEM) (Long +18%) shares outperformed as the company released its first quarter results where gold production exceeded consensus estimates. Newmont also sold a non-core gold asset for US$330m. This move is consistent with the company’s strategy to focus on execution at its large, low-cost and high free cash flow generative assets, while divesting smaller operations to simplify the portfolio. We became shareholders of Newmont following the acquisition of Newcrest in October 2023. With the recent share price rally, we exited the position and rotated into other gold equities where we see greater near-term upside potential.”
A gold mine entry with a conveyor belt transporting minerals from the depths of a shaft.
Newmont Corporation (NYSE:NEM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Newmont Corporation (NYSE:NEM) at the end of the first quarter which was 53 in the previous quarter. While we acknowledge the potential of Newmont Corporation (NYSE:NEM) 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 Newmont Corporation (NYSE:NEM) and shared the list of stocks receiving a massive vote of approval from Wall Street analysts. In addition, please check out our hedge fund investor letters Q2 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.
