Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Small-Cap Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. Longleaf Partners Small-Cap Fund added 1.91% in the fourth quarter, roughly in line with the Russell 2000’s 2.14% return. For the year, the Fund returned 11.18%, falling short of the Russell 2000, which returned 14.82%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Longleaf Partners Small-Cap Fund Commentary, in its Q4 2021 investor letter, mentioned CNX Resources Corporation (NYSE: CNX) and discussed its stance on the firm. CNX Resources Corporation is a Canonsburg, Pennsylvania-based natural gas company with a $3.0 billion market capitalization. CNX delivered a 6.33% return since the beginning of the year, while its 12-month returns are up by 11.94%. The stock closed at $14.62 per share on January 21, 2022.
Here is what Longleaf Partners Small-Cap Fund Commentary has to say about CNX Resources Corporation in its Q4 2021 investor letter:
“CNX Resources (27%, 2.14%; 9%, 0.46%), the Appalachian natural gas producer, was another top contributor. With higher strip gas prices, another strong year of FCF and a 13% annualized repurchase pace last quarter, our appraisal of the value increased over 20%. However, the company’s conservative hedging program that has helped it withstand prior bear markets also held back earnings growth this year. The board, led by chairman Will Thorndike, recently authorized another $1 billion of repurchase, representing nearly one third of outstanding shares at today’s price. Despite higher absolute FCF than Appalachian comps with inferior inventory positions, CNX trades at less than half of their enterprise values.”
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Our calculations show that CNX Resources Corporation (NYSE: CNX) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CNX was in 34 hedge fund portfolios at the end of the third quarter of 2021, compared to 30 funds in the previous quarter. CNX Resources Corporation (NYSE: CNX) delivered a -6.40% return in the past 3 months.
In November 2021, we also shared another hedge fund’s views on CNX 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.
