Greenlight Capital, an investment management firm, released its first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the Greenlight Capital funds returned 4.9% net of fees and expenses, compared to 10.6% for the S&P 500 index. The year’s first quarter saw a bullish market, with investors focusing on AI, cryptocurrency, and meme stocks. Despite the market’s strong performance, the long and short portfolios didn’t fare as well. The long portfolio only saw a modest increase of 2.2%, net of fees and expenses, while the single-name short portfolio broke even. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Greenlight Capital featured stocks like Teck Resources Limited (NYSE:TECK) in the first quarter 2024 investor letter. Headquartered in Vancouver, Canada, Teck Resources Limited (NYSE:TECK) engages in the exploration, acquisition, development, production, and sale of natural resources. On May 7, 2024, Teck Resources Limited (NYSE:TECK) stock closed at $50.34 per share. One-month return of Teck Resources Limited (NYSE:TECK) was 1.94%, and its shares gained 12.39% of their value over the last 52 weeks. Teck Resources Limited (NYSE:TECK) has a market capitalization of $26.192 billion.
Greenlight Capital stated the following regarding Teck Resources Limited (NYSE:TECK) in its first quarter 2024 investor letter:
“Finally, we established a medium-sized macro position to benefit from higher copper prices. Long-time partners may recall that in 2021 we presented Teck Resources Limited (NYSE:TECK) at the Sohn Investment Conference. At the time, our thesis was based on a combination of being bullish on copper and believing that TECK was about to exit the penalty box after a multi-year investment in a new copper mine that was on the brink of finally coming online. Back then, TECK traded at C$31.09. Based on copper at $4.50 a pound, we thought the stock was undervalued by half. It has since doubled (and dramatically outperformed copper peer Freeport-McMoRan) and, over time, we have reduced the position into strength.
As we showed on this slide from our 2021 presentation, our thesis was that after several new mines, including TECK’s, there would not be new supply available in the second half of this decade.
Time has passed, the new mines have come online and the anticipated gap between supply and demand is likely to open up in the next year. While we still believe TECK is undervalued should copper prices rise, it is less undervalued than it once was. Our thesis now is that copper supply is about to fall short of demand, forcing prices substantially higher. Once again, we think the best way to invest in that thesis is the most direct way – in this case through options on copper futures.”
An aerial view of the 1,840 mineral claims spread out over a 274 square mile area for the Pebble Copper-Gold-Molybdenum-Silver-Rhenium project.
Teck Resources Limited (NYSE:TECK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Teck Resources Limited (NYSE:TECK) was held by 68 hedge fund portfolios, compared to 75 in the previous quarter, according to our database.
We previously discussed Teck Resources Limited (NYSE:TECK) in another article, where we shared billionaire Stanley Druckenmiller’s top stock picks. L1 Capital’s L1 Long Short Fund holds long position in Teck Resources Limited (NYSE:TECK) and it rose 8% in the first quarter due to copper market dynamics. Greenlight Capital initiated a small position in Teck Resources Limited (NYSE:TECK) in the current quarter to capitalize the same opportunity. In addition, please check out our hedge fund investor letters Q1 2024 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.
