Should You Sell NET Power (NPWR)?

Greenlight Capital, an investment management firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Greenlight Capital funds returned 2.8% net of fees and expenses, compared to 4.3% for the S&P 500 index. The longs in the portfolio underperformed the S&P 500 and the shorts outperformed the inverse of the S&P 500. However, the portfolio maintained a neutral net long exposure of about 40%. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Greenlight Capital highlighted stocks like NET Power Inc. (NYSE:NPWR) in the second quarter 2024 investor letter. NET Power Inc. (NYSE:NPWR) is a clean energy technology company. The one-month return of NET Power Inc. (NYSE:NPWR) was -8.57%, and its shares lost 46.61% of their value over the last 52 weeks. On August 23, 2024, NET Power Inc. (NYSE:NPWR) stock closed at $8.43 per share with a market capitalization of $616.958 million.

Greenlight Capital stated the following regarding NET Power Inc. (NYSE:NPWR) in its Q2 2024 investor letter:

“We exited a few positions during the quarter, including, NET Power Inc. (NYSE:NPWR): We exited with a small gain. The path for the company from here to future profits appears to be more distant and risk fraught than we initially anticipated. Under the circumstances, not losing money on this investment feels like a win.”

An energy efficient wind turbine on a sprawling field, generating renewable energy.

NET Power Inc. (NYSE:NPWR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held NET Power Inc. (NYSE:NPWR) at the end of the second quarter which was 23 in the previous quarter. While we acknowledge the potential of NET Power Inc. (NYSE:NPWR) 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 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.