Massif Capital, an investment management company, released its “Massif Capital Real Assets Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned -1.14% net of fees and delivered a -5.8% return (net of fees) year to date. The fund generated a 6.55% return from the long book during the fourth quarter which was offset by a 7.49% decline from the short book. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Massif Capital highlighted stocks like Ormat Technologies, Inc. (NYSE:ORA) in its Q4 2022 investor letter. Headquartered in Reno, Nevada, Ormat Technologies, Inc. (NYSE:ORA) operates a geothermal and recovered energy power business. On March 7, 2023, Ormat Technologies, Inc. (NYSE:ORA) stock closed at $87.39 per share. One-month return of Ormat Technologies, Inc. (NYSE:ORA) was -4.51%, and its shares gained 16.49% of their value over the last 52 weeks. Ormat Technologies, Inc. (NYSE:ORA) has a market capitalization of $4.902 billion.
Massif Capital made the following comment about Ormat Technologies, Inc. (NYSE:ORA) in its Q4 2022 investor letter:
“We shorted Ormat Technologies, Inc. (NYSE:ORA) last year as the firm appeared to be an unprofitable geothermal-focused independent energy producer borrowing money to grow an even less-profitable U.S. renewables energy business. Along with eroding the company’s margins, we expected numerous executional challenges in the build-out of Ormat’s new U.S. renewable business. We got impatient as it increased from our short price of roughly $75 to $100, and we closed out the position. At the time, we noted the following:
“Reviewed earnings [3rd Qtr 2022] and found that although execution had struggled, the impact was minimal, the future impact of the IRA [Inflation Reduction Act] on the firm’s independent power production is uncertain (although almost assuredly positive), as such the business appears likely to maintain, at least for some period, its high earnings margins relative to independent power producing peers. We cannot find a reason to question the high margins’ near-term sustainability, but long-term sustainability should be in question. Nevertheless, we do not see a catalyst in the future to prompt a repricing or reevaluation of the multiple being placed on unsus[1]tainably high earnings or a catalyst that will send the high margins lower in short order, despite the fact the stock is clearly overvalued on fundamental earnings and cash flow basis. Absent a catalyst, it seemed prudent to exit the position.”…” (Click here to read the full text)
Photo by andreas gucklhorn on Unsplash
Ormat Technologies, Inc. (NYSE:ORA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Ormat Technologies, Inc. (NYSE:ORA) at the end of the fourth quarter which was 16 in the previous quarter.
We discussed Ormat Technologies, Inc. (NYSE:ORA) in another article and shared the list of biggest geothermal companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 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.
