5 Best Canadian Stocks to Buy and Hold

4. Cameco Corporation (NYSE:CCJ)

Number of Hedge Fund Holders: 54

Canadian-based uranium company Cameco Corporation (NYSE:CCJ) has been on an absolute tear this year, gaining 71% through October 26.

A total of 52 hedge funds in Insider Monkey’s database of 910 hedge funds had stakes in Cameco Corporation (NYSE:CCJ). The biggest hedge fund stakeholder of Cameco Corporation (NYSE:CCJ) was Richard Driehaus’s Driehaus Capital which had a $131 million stake in the company.

Aristotle Capital’s International Equity strategy made the following comment about Cameco Corporation (NYSE:CCJ) in its second quarter 2023 investor letter:

“Cameco Corporation (NYSE:CCJ), the world’s largest publicly traded uranium producer, was the top contributor during the period. Over the past year, there has been a rise in support from governments and policymakers for nuclear energy as countries realize it can play a crucial role in lowering dependence on fossil fuels to meet environmental pledges and goals. In addition, Russia’s war in Ukraine had led to an increase in the price of competing carbon fuels and heightened attention on energy security. Although such global market dynamics have likely favored Cameco in the short term, we believe the company will benefit long term from its financial discipline and advantaged assets. (Its Canadian mines—Cigar Lake and McArthur River/Key Lake— produce some of the world’s highest‐grade uranium.) Cameco has also slowly ramped up production while obtaining long‐term contracts. As such, in 2022, Cameco signed a record number of long‐term supply contracts and conversion services (where yellow cake is processed and readied for enrichment operations). This success has continued into 2023, with Cameco having recently secured an additional 12‐year contract with Energoatom, Ukraine’s state‐owned nuclear energy company, as well as a 10‐year agreement with Bulgaria. Central and Eastern Europe are new markets for Cameco, and this supports our belief that the company is well‐positioned to win new business in the regions that were historically dominated by Russia. Moreover, we look forward to Cameco’s planned acquisition of Westinghouse Electric Company (expected to close during the second half of 2023), as we believe Westinghouse’s market‐leading downstream capabilities will align well with Cameco’s production and fuel services to offer a highly competitive nuclear fuel solution.”