Massif Capital, an investment management company, released its “Massif Capital Real Assets Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned -1.14% net of fees and delivered a -5.8% return (net of fees) year to date. The fund generated a 6.55% return from the long book during the fourth quarter which was offset by a 7.49% decline from the short book. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Massif Capital highlighted stocks like Lithium Americas Corp. (NYSE:LAC) in its Q4 2022 investor letter. Headquartered in Vancouver, Canada, Lithium Americas Corp. (NYSE:LAC) is a resource company. On March 7, 2023, Lithium Americas Corp. (NYSE:LAC) stock closed at $23.27 per share. One-month return of Lithium Americas Corp. (NYSE:LAC) was -8.89%, and its shares lost 17.66% of their value over the last 52 weeks. Lithium Americas Corp. (NYSE:LAC) has a market capitalization of $3.608 billion.
Massif Capital made the following comment about Lithium Americas Corp. (NYSE:LAC) in its Q4 2022 investor letter:
“Our final pre-production mining firm in the portfolio is Lithium Americas Corp. (NYSE:LAC). We have been invested in Lithium America since January 2020, with an average price of roughly $2.8 per share. Interestingly enough, as a result of successfully trading options around our core position, we have generated options premium per share of $2.03, so our effective cost of ownership is $0.77. The shares are currently trading for $20.72, an unrealized return of 2,590%, although it is worth noting that the stock got as high as $38.94 per share, a 4,957% return.
In retrospect, we probably misplayed this. When the stock peaked at $38 per share in February/March 2022, we believed the firm, in the fullness of time, could be worth as much as $46 per share, an additional 21% return. At the same time, we felt that the stock had run well ahead of itself; after all, we believed it could be worth $46 per share with two mines operating, not when it was pre-production at two mines…” (Click here to read the full text)
Lithium Americas Corp. (NYSE:LAC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Lithium Americas Corp. (NYSE:LAC) at the end of the fourth quarter which was 14 in the previous quarter.
We discussed Lithium Americas Corp. (NYSE:LAC) in another article and shared the list of most promising EV battery stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q4 2022 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.
