Cenovus Energy (CVE) Landed in L1 Capital’s Contributors List

L1 Capital, an investment management firm, published its ‘L1 Long Short Fund Limited’ fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly net return of -1.7% was recorded by the fund for the fourth quarter of 2021, underperforming its S&P ASX 200 AI benchmark by -3.8%. The benchmark meanwhile had a 2.1% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

L1 Capital Long Short Fund Limited, in its Q4 2021 investor letter, mentioned Cenovus Energy Inc. (NYSE: CVE) and discussed its stance on the firm. Cenovus Energy Inc. is a Calgary, Canada-based oil and natural gas company with a $30.6 billion market capitalization. CVE delivered a 29.15% return since the beginning of the year, while its 12-month returns are up by 134.96%. The stock closed at $15.32 per share on February 11, 2022.

Here is what L1 Capital Long Short Fund Limited has to say about Cenovus Energy Inc. in its Q4 2021 investor letter:

“Detailed, bottom-up stock research remains the investment team’s primary focus and the core driver of portfolio performance. 2021 once again demonstrated the team’s ability to identify ‘winners’ through extensive company and industry research across a diverse range of sectors. Key contributors included Cenovus Energy, (due to) recovering oil price leading to improved investor sentiment, consensus earnings upgrades and strong free cashflow generation.”

Natural Gas

Our calculations show that Cenovus Energy Inc. (NYSE: CVE) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CVE was in 30 hedge fund portfolios at the end of the third quarter of 2021, compared to 32 funds in the previous quarter. Cenovus Energy Inc. (NYSE: CVE) delivered a 24.49% return in the past 3 months.

In March 2021, we also shared L1 Capital’s Q4 2020 views on CVE in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.