Yahoo Finance Should You Hold NexGen Energy Ltd. (NXE) for the Long Term?
L1 Capital, an investment management firm, released its “L1 Long Short Fund” second quarter 2024 investor letter. Over the quarter, global markets were mixed, with several themes impacting key markets. A copy of the letter can be downloaded here. 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. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
L1 Long Short Fund highlighted stocks like NexGen Energy Ltd. (NYSE:NXE), in the second quarter 2024 investor letter. NexGen Energy Ltd. (NYSE:NXE) is an exploration and development stage company. The one-month return of NexGen Energy Ltd. (NYSE:NXE) was -5.20%, and its shares gained 43.40% of their value over the last 52 weeks. On July 17, 2024, NexGen Energy Ltd. (NYSE:NXE) stock closed at $6.74 per share with a market capitalization of $3.787 billion.
L1 Long Short Fund stated the following regarding NexGen Energy Ltd. (NYSE:NXE) in its Q2 2024 investor letter:
"NexGen Energy Ltd. (NYSE:NXE) (Long -10%) weakened as uranium prices fell -7% over the quarter. We continue to see the uranium market as having positive fundamental supply/demand tailwinds over the medium to long term. NexGen is preparing to develop the world’s largest undeveloped uranium deposit, Arrow, located in Saskatchewan, Canada. This would be a major, new, strategic Western source to address the anticipated uranium market deficit. We anticipate that NexGen will have completed all regulatory requirements over the course of 2024, providing a clear pathway to full scale construction of the project. Arrow has the potential to generate more than C$2b of cash flow annually, once developed (2028) – a highly attractive proposition given NexGen’s current market cap of ~C$5.5b."
A miner in a hard hat and apron holding a piece of uranium ore in the Athabasca Basin, Saskatchewan.
NexGen Energy Ltd. (NYSE:NXE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held NexGen Energy Ltd. (NYSE:NXE) at the end of the first quarter which was 31 in the previous quarter. While we acknowledge the potential of NexGen Energy Ltd. (NYSE:NXE) 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 NexGen Energy Ltd. (NYSE:NXE) and shared the list of best growth stocks under $10 to buy. NexGen Energy Ltd. (NYSE:NXE) contributed to the performance of L1 Long Short Fund in Q1 2024. 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.
