Moon Capital Management, an investment management company, released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. The stock prices moved extraordinarily during the first half and the S&P 500 increased approximately 16% during the period. The fund increased approximately 11% in the first half of 2023 lagging behind the S&P500’s 15.9% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Moon Capital Management highlighted stocks like Canadian Natural Resources Limited (NYSE:CNQ) in the second quarter 2023 investor letter. Headquartered in Calgary, Canada, Canadian Natural Resources Limited (NYSE:CNQ) is an oil and natural gas company that acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids. On July 21, 2023, Canadian Natural Resources Limited (NYSE:CNQ) stock closed at $58.27 per share. One-month return of Canadian Natural Resources Limited (NYSE:CNQ) was 6.58%, and its shares gained 13.08% of their value over the last 52 weeks. Canadian Natural Resources Limited (NYSE:CNQ) has a market capitalization of $63.654 billion.
Moon Capital Management made the following comment about Canadian Natural Resources Limited (NYSE:CNQ) in its second quarter 2023 investor letter:
“Canadian Natural Resources Limited (NYSE:CNQ): For several reasons, we have always viewed the oil and gas industry with an especially skeptical eye. Commodity businesses are difficult to forecast, and the industry has long been plagued by poor incentive structures and principal-agent issues. The managements of many of the smaller companies in the industry are notable for seldom being burdened with an abundance of ethics. Further, the entire industry has historically been dominated by a “drill at all costs” mentality, with little regard to returns on capital. That is, until recently, as social concerns have helped propel both a sell-off in oil and gas company stock prices and a massive reduction in capital expenditures. The lack of capital expenditures has created a favorable environment for higher commodity prices. As a result, we are beginning to see the sector as a more appealing hunting ground.
The move from fossil fuels may be inevitable, but it is in no way imminent, regardless of the political or social pressures demanding otherwise. While renewable energy sources will continue to take “market share” from fossil fuels, even the most ardent renewables supporters acknowledge that oil and gas will continue to be needed for at least the next 30 years to bridge the gap to even the most optimistic projections of a complete shift to renewables.
We recently purchased shares of Canadian Natural Resources (CNQ), a diversified energy company that specializes in the acquisition, exploration, development, production, and sale of crude oil and natural gas. We consider CNQ to be one of the few companies in the industry that never needed to undergo either a capital allocation or ethical transformation. The company has long nurtured a culture of continuous improvement, emphasizing cost control to drive strong operational and financial results while working to maximize shareholder value…” (Click here to read the full text)
Canadian Natural Resources Limited (NYSE:CNQ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Canadian Natural Resources Limited (NYSE:CNQ) at the end of first quarter which was 41 in the previous quarter.
We discussed Canadian Natural Resources Limited (NYSE:CNQ) in another article and shared the list of undervalued Canadian stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2023 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.
