5 Best Stocks to Buy According to Billionaire Mason Hawkins

2. CNX Resources Corporation (NYSE: CNX)

Value: $383,486,000
Percent of Mason Hawkins’ 13F Portfolio: 8.6%
Number of Hedge Fund Holders: 25

Securing the second spot on the list of 10 best stocks to buy according to billionaire Mason Hawkins is CNX Resources Corporation. Headquartered in Canonsburg, Pennsylvania, CNX Resources Corporation is one of the leading natural gas companies and the first company to use an electric fracking fleet located in the Appalachian Basin. Truist Securities recently downgraded CNX Resources from Buy to Hold, with a $16 price target. 

The company has a market cap of $3.01 billion. The company’s revenue in full-year 2020 came in at $1.24 billion. The stock has gained 29% in the last twelve months. Southeastern Asset Management currently owns 35.5 million shares of CNX, worth $383 million. CNX occupies 8.6% of Mason Hawkins’ Southeastern Asset Management’s overall equity. Overall, hedge fund sentiment decreased significantly. The stock was in 25 hedge funds’ portfolios at the end of December compared to 33 in the previous quarter.

Longleaf Partners Global Fund mentioned that compared to the S&P 500, where Energy was by far the lowest performing sector in the year, CNX had been a good relative contributor in its Q4 2020 investor letter:

“CNX (22%, 1.57%; 14%, 0.58%), the natural gas company, was also a strong contributor, after having been noted in our 2019 year-end letter as a “problem child.” The company reported strong free-cash flow and earnings before interest rate, tax, depreciation and amortization (EBITDA) growth in the first half. In addition to its positive absolute performance, CNX has been a strong relative contributor versus the S&P 500 for which Energy was by far the worst performing sector in the year. In October, Bloomberg reported that Appalachian neighbor EQT approached CNX with a merger offer. CEO Nick DeIuliis and Chairman Will Thorndike are focused on their company’s value per share and will do the right thing for shareholders. CNX has the potential to both pay down debt with its hedged FCF and resume repurchases to grow FCF/share during an extreme energy bear market.”

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