Coterra Energy (CTRA) Landed in Diamond Hill Capital’s Bottom Contributors’ List

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio outpaced the Russell 2000® Index in the quarter, adding to full-year outperformance. Relative performance was aided by our below-benchmark health care exposure, particularly its lack of exposure to biotechnology stocks which were down nearly 13% in the quarter and represent almost half the sector’s weight Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Diamond Hill Small Cap Fund, in its Q4 2021 investor letter, mentioned Coterra Energy Inc. (NYSE: CTRA) and discussed its stance on the firm. Coterra Energy Inc. is a Bristol, Tennessee-based mining company with an $18.4 billion market capitalization. CTRA delivered a 19.53% return since the beginning of the year, while its 12-month returns are up by 22.69%. The stock closed at $22.71 per share on February 25, 2022.

Here is what Diamond Hill Small Cap Fund has to say about Coterra Energy Inc. in its Q4 2021 investor letter:

“Other bottom contributors included Coterra Energy. Coterra is the result of a merger-of-equals between our prior holding Cimarex Energy and Cabot Oil & Gas—the largest natural gas producer in the Northeast. The combined company has solid, low cost of production assets and a good balance sheet. During the quarter, share prices fell as concerns over additional waves of COVID-19 pressured oil and gas prices lower.”

Image by Tshekiso Tebalo from Pixabay

Our calculations show that Coterra Energy Inc. (NYSE: CTRA) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds.  In January 2022, we also shared another hedge fund’s views on CTRA 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.