How Competitive is Nutrien’s (NTR) Business?

First Eagle Investment Management recently released its Q2 2020 Investor Letter, a copy of which you can download here. The First Eagle Global Fund A Shares posted a return of 14.73% for the second quarter (without sales charge), underperforming its benchmark, the MSCI World Index which returned 19.36% in the same quarter. You should check out First Eagle’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, First Eagle highlighted a few stocks and Nutrien Ltd. (NYSE:NTR) is one of them. Nutrien Ltd. (NYSE:NTR) is a fertilizer company. Year-to-date, Nutrien Ltd. (NYSE:NTR) stock lost 25.9% and on August 4th it had a closing price of $34.94. Here is what First Eagle said:

“Potash prices have trended lower year-to-date, challenging Canadian fertilizer company Nutrien. Though sales volumes have held steady and the stock rebounded off its March lows, reduced prices for its primary earnings driver proved to be a headwind in the quarter. While there are some concerns about potash pricing moving forward as a competitor readies a large Canadian mine that is expected to provide a significant boost to potash capacity, we believe Nutrien’s cost structure will allow it to remain competitive in what we view as a stable business.”


In Q1 2020, the number of bullish hedge fund positions on Nutrien Ltd. (NYSE:NTR)  stock decreased by about 21% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Nutrien’s growth potential. Our calculations showed that Nutrien Ltd. (NYSE:NTR)  isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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