Chamath Palihapitiya Stocks: 5 Stocks Picked in the Last 10 Years

2. MP Materials Corp. (NYSE:MP)

Number of Hedge Fund Holders: 36    

MP Materials Corp. (NYSE:MP) owns and operates rare earth mining and processing facilities. In addition to his own SPAC deals, Chamath Palihapitiya has also funded other SPAC deals through the Private Investment in Public Equity (PIPE) track. MP Materials was one such firm, in which Palihapitiya helped pump up the stock for the IPO, co-leading a $200 million PIPE investment in the firm. 

At the end of the third quarter of 2022, 36 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in MP Materials Corp. (NYSE:MP), compared to 26 in the previous quarter worth $1.98 billion.

In its Q3 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and MP Materials Corp. (NYSE:MP) was one of them. Here is what the fund said:

“ClearBridge has visited and engaged with holding MP Materials Corp. (NYSE:MP), for example, a U.S. mining company with a facility that supplies neodymium and praseodymium, two rare earth minerals used to make powerful magnets found in 90% of EV motors. The facility recycles all water from its process such that recycled water meets 95% of the facility’s water needs, while the rest comes from groundwater. In the recycling process, wastewater is piped to an on-site water treatment plant where it is treated using reverse osmosis and then reused. In a recent engagement with the company, we encouraged it to disclose the groundwater extraction quantities that make up the other 5% and compare these to peers.”