Peabody Energy Corporation (BTU), Newmont Mining Corp (NEM), Centrais Eletricas Brasileiras SA (ADR) (EBR): Kopernik Global Investors’ Top Picks’ Performance

Kopernik Global Investors is a hedge fund managed by David Iben, who used to work for Jeff Vinik’s Vinik Asset Management until it was shuttered in 2013. Most of the employees at Kopernik are former Vinik personnel; in fact, Mr. Vinik himself has provided $20 million in seed capital.

In its last 13F filing, Kopernik disclosed ownership of more than $181 million in stock, mainly from basic materials companies (65.9% of its total equity portfolio). Let’s take a look at its three largest equity positions and their performances over the past few months.

Peabody Energy Corporation (NYSE:BTU)

Mr. Iben’s largest bet is placed on Peabody Energy Corporation (NYSE:BTU), a $4 billion market cap, thermal coal mining company. The fund last disclosed ownership of 1.4 million shares of Peabody Energy Corporation (NYSE:BTU), worth more than $20.9 million at current stock prices. After Kopernik increased its exposure to the company by 1,374% on the quarter, the stake accounts for 12.6% of its equity portfolio’s total value.

Before this boost, the fund’s position in Peabody Energy Corporation (NYSE:BTU) was almost insignificant. However, the increase does not seem particularly wise looking back; since the end of the first quarter of 2014, the stock is down 7.57%. Year-to-date, the loss has been even larger: 23.71%.

Another hedge fund that has an even larger position in Peabody Energy Corporation (NYSE:BTU) is Doug Silverman and Alexander Klabin’s Senator Investment Group, which declared having purchased 15 million shares of the company on June 11. Since that date, the stock price has plunged by 7.8%.

Nonetheless, these hedge funds seem to be betting on the long run. Analysts expect Peabody Energy Corporation (NYSE:BTU)’s stock price to reach the $20 threshold over the next 12 months; this implies an upside potential of roughly 35%.

The second largest position in Kopernik’s portfolio, Newmont Mining Corp (NYSE:NEM), was added during the first quarter of 2014. This $12.66 billion market cap, gold and copper production and exploration company saw the fund acquire 931,583 shares over the first quarter. The position is currently worth $23.42 million, after having gained 5.18% since March 31, 2014, and 9.25%, year-to-date. Moreover, analysts expect Newmont Mining Corp (NYSE:NEM)’s stock price to increase, at least by an extra 8% over the upcoming year.

Another fund that stands to benefit from Newmont Mining Corp (NYSE:NEM)’s stock’s past and future performance is William B. Gray’s Orbis Investment Management, which started a position with 9.68 million shares, over the first quarter of 2014.

In the third spot is Centrais Eletricas Brasileiras SA (ADR) (NYSE:EBR.B) –also known as Electrobras, a $1.38 billion market cap electric energy company of which Mr. Iben’s fund owns 3.83 million shares, worth roughly $19.35 million at current stock prices. Centrais Eletricas Brasileiras SA (ADR) (NYSE:EBR.B)’s stock is up 14.55% year-to-date, and 7.23% since March 31, 2014, but growth projections going forward are not very encouraging.

Nonetheless, several major hedge funds are betting on Centrais Eletricas Brasileiras SA (ADR) (NYSE:EBR.B). Amongst them I would like to highlight Arrowstreet Capital, which last disclosed ownership of almost 3 million shares.

Disclosure: Javier Hasse holds no position in any stocks mentioned

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!