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NexGen Energy Ltd. (NXE) Increased 11% in Q1

L1 Capital, an investment management firm, released its “L1 Long Short Fund” first quarter 2024 investor letter, a copy of the same can be downloaded here. As U.S. economic data continued to surprise to the upside in comparison to market expectations, equity markets saw a gain throughout the March quarter. The portfolio returned 7.4% for the quarter compared to 5.3% for S&P/ASX 200 AI. Over the past three years, the portfolio return was 14.8% p.a compared to 9.6% p.a. for the index. Please check the top five holdings of the fund to know its best picks in 2024.

L1 Long Short Fund featured stocks like NexGen Energy Ltd. (NYSE:NXE) in the first quarter 2024 investor letter. Headquartered in Vancouver, Canada, NexGen Energy Ltd. (NYSE:NXE) is an exploration and development stage company.  On April 16, 2024, NexGen Energy Ltd. (NYSE:NXE) stock closed at $7.84 per share. One-month return of NexGen Energy Ltd. (NYSE:NXE) was 2.96%, and its shares gained 116.16% of their value over the last 52 weeks. NexGen Energy Ltd. (NYSE:NXE) has a market capitalization of $4.242 billion.

L1 Long Short Fund stated the following regarding NexGen Energy Ltd. (NYSE:NXE) in its first quarter 2024 investor letter:

“NexGen Energy Ltd. (NYSE:NXE) (Long +11%) performed well as uranium prices reached 15-year highs during the quarter, due to structural demand tailwinds and as the world’s largest producer, Kazatomprom (~20% global supply), downgraded its 2024 production expectations. We continue to see the uranium market as having positive fundamental supply/demand tailwinds over the medium to long term. NexGen is preparing to develop the world’s largest undeveloped uranium deposit, Arrow, located in Saskatchewan, Canada. This would be a major, new, strategic Western source to address the anticipated uranium market deficit. We anticipate that NexGen will have completed all regulatory requirements over the course of 2024, providing a clear pathway to full scale construction of the project. At the uranium prices reached during the March quarter, Arrow has the potential to generate more than C$2b of cash flow annually, once developed (2028) – a highly attractive proposition given NexGen’s market cap of ~C$5.8b. We made the majority of our investment in NexGen when it had a market cap of around C$2b.”

A miner in a hard hat and apron holding a piece of uranium ore in the Athabasca Basin, Saskatchewan.

NexGen Energy Ltd. (NYSE:NXE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, NexGen Energy Ltd. (NYSE:NXE) was held by 31 hedge fund portfolios, compared to 27 in the previous quarter, according to our database.

We previously discussed NexGen Energy Ltd. (NYSE:NXE) in another article, where we shared GreenWood Investors’ perspective on the company. 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.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

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