Is Centrus Energy Corp. (LEU) A Smart Long-Term Buy?

Old West Investment Management LLC, an investment management firm, published its fourth quarter 2020 investor letter – a copy of which can be downloaded here. In the letter, the fund stated that their LP strategies returned an average of 65% and their SMA strategies returned an average of 66%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Old West Investment Management, in their Q4 2020 investor letter, mentioned Centrus Energy Corp. (NYSE: LEU) and emphasized their views on the company. Centrus Energy Corp. is a Bethesda, Maryland-based engineering services company that currently has a $321.3 million market capitalization. Since the beginning of the year, LEU delivered a 3.80% return, impressively extending its 12-month gains to 345.45%. As of March 26, 2021, the stock closed at $24.01 per share.

Here is what Old West Investment Management has to say about Centrus Energy Corp. in their Q4 2020 investor letter:

“The uranium mining industry had been in a severe downturn for nearly a decade, and now that the cycle has turned we believe a multiyear bull market lies ahead. If you recall from our most recent investor letter, Brian did a writeup of Centrus Energy. At the time of that letter Centrus was trading at $9 per share. It finished the year at $23.”

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Our calculations show that Centrus Energy Corp. (NYSE: LEU) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Centrus Energy Corp. was in 4 hedge fund portfolios, compared to 3 funds in the third quarter. LEU delivered a -8.98% return in the past 3 months.