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

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

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!