Here’s Why Hallador Energy Company (HNRG) is Performing Strongly

Investment management company Cove Street Capital recently released its “Small Cap Value Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. During the calendar third quarter of 2023, financial markets were chaotic, causing CSC shareholders to lose some gains from the first half, both relatively and absolutely. In the third quarter, the fund delivered -7.48% compared to a -5.13% return for the Russell 2000 Index and a -2.96% return for the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Cove Street Small Cap Value Fund highlighted stocks like Hallador Energy Company (NASDAQ:HNRG) in the third quarter 2023 investor letter. Headquartered in Terre Haute, Indiana, Hallador Energy Company (NASDAQ:HNRG) engages in the production of steam coal. On October 9, 2023, Hallador Energy Company (NASDAQ:HNRG) stock closed at $14.77 per share. One-month return of Hallador Energy Company (NASDAQ:HNRG) was 28.66%, and its shares gained 128.64% of their value over the last 52 weeks. Hallador Energy Company (NASDAQ:HNRG) has a market capitalization of $489.513 million.

Cove Street Small Cap Value Fund made the following comment about Hallador Energy Company (NASDAQ:HNRG) in its Q3 2023 investor letter:

“Hallador Energy Company (NASDAQ:HNRG), which was our top contributor in the quarter, continues to perform strongly, as the inherent value in “old carbon” continues to regain some grudging appreciation in financial markets. We continue to think this is an investment with “legs” given the difficult supply/demand issues inherent in any form of a “green” transition. But importantly, we continue to risk weight the stock as a classic commodity and are net sellers to maintain a 2.5% position.”

Coal

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Hallador Energy Company (NASDAQ:HNRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Hallador Energy Company (NASDAQ:HNRG) at the end of the second quarter, which was 12 in the previous quarter.

We discussed Hallador Energy Company (NASDAQ:HNRG) in another article and shared the list of best coal mining stocks to buy. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

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