Is MP Materials (MP) a Great Investment Choice?

Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The portfolio fell -4.6% (gross), modestly below the Russell 2000 Value’s decline of -2.4% and the Russell 2500 Value’s decline of -1.5% for the first quarter of 2022. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Bernzott Capital US Small Cap Value Fund mentioned MP Materials Corp. (NYSE:MP) and explained its insights for the company. Founded in 2017, MP Materials Corp. (NYSE:MP)  is a Las Vegas, Nevada-based mining company with a $6.2 billion market capitalization. MP Materials Corp. (NYSE:MP)  delivered a -23.56% return since the beginning of the year, while its 12-month returns are up by 30.13%. The stock closed at $38.29 per share on May 09, 2022.

Here is what Bernzott Capital US Small Cap Value Fund has to say about MP Materials Corp. (NYSE:MP) in its Q1 2022 investor letter:

“MP Materials (NYSE:MP): This rare earth specialty materials company reported solid earnings driven by higher production and selling prices of neodymium-praseodymium (NdPr), a vital component for the development of magnets used in EV production, wind turbines, drones, robotics, and other industrial applications. Also contributing were offtake agreements with General Motors for magnets and expansion plans for domestic production of magnets making MP the only domestic producer. The balance sheet and cash flow generation remain strong, supportive of expansion plans in the current NdPr pricing environment.”

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Our calculations show that MP Materials Corp. (NYSE:MP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. MP Materials Corp. (NYSE:MP) was in 24 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 20 funds in the previous quarter. MP Materials Corp. (NYSE:MP) delivered a -8.92% return in the past 3 months.

In April 2022, we published an article that includes (NYSE:MP) in 10 Favorite Stocks of Billionaire Leon Cooperman. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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