Investment management company Cove Street Capital recently released its “Small Cap Value Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. At the end of the second quarter, the fund returned -13.70% compared to -17.20% for the Russell 2000 Index and -15.28% for the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Cove Street Capital discussed stocks like Hallador Energy Company (NASDAQ:HNRG) in the second quarter investor letter. Headquartered in Terre Haute, Indiana, Hallador Energy Company (NASDAQ:HNRG) is a steam coal production company. On August 25, 2022, Hallador Energy Company (NASDAQ:HNRG) stock closed at $7.30 per share. One-month return of Hallador Energy Company (NASDAQ:HNRG) rose to 8.82% and its shares gained 216.52% of their value over the last 52 weeks. Hallador Energy Company (NASDAQ:HNRG) has a market capitalization of $239.784 million.
Here is what Cove Street Capital specifically said about Hallador Energy Company (NASDAQ:HNRG):
“Hallador Energy Company (NASDAQ:HNRG) is a… (get ready for it) … coal company. They have an unusual asset position – a very low cost basis in the Illinois Basis – almost all of which is thermal coal used in electricity generation. You might have noticed that the United States is theoretically attempting to transition our power needs in a ten-year plan when the reality is that 50 is probably the realistic number. The drive to this unrealistic goal is producing a severe shortage of “baseline” power production, which is simply not a good thing. Our bet is that Hallador’s assets are worth a lot more and will generate cash for a lot longer than is being priced in by the market. There is an interesting and financially savvy board guiding the CEO. In a new and interesting twist, the company essentially is being “given” a coal fired power plant in their backyard due to political issues. This could represent an enormous piece of upside subject to the vagaries of regulation and weather. Although we have followed the company for many years, this was a new buy in the quarter.”
Hallador Energy Company (NASDAQ:HNRG) is not on the list of 30 Most Popular Stocks Among Hedge Funds. Hallador Energy Company (NASDAQ:HNRG) was held by 5 hedge fund portfolios at the end of the second quarter compared to 8 in the previous quarter.
We discussed Hallador Energy Company (NASDAQ:HNRG) in another article and shared the list of coal stocks to invest in. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.
Disclosure: None. This article is originally published at Insider Monkey.
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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.
At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.
Do the math. According to Musk, this technology could be worth $250 trillion by 2040.
Put another way, that’s roughly equal to:
175 Teslas
107 Amazons
140 Metas
84 Googles
65 Microsofts
And 55 Nvidias
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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.
Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.
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In fact, Verge argues this company’s supercheap AI technology should concern rivals.
Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.
Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.
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Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…
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