Should You Hold MP Materials (MP) for the Long Term?

Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” first-quarter 2024 investor letter. A copy of the same can be downloaded here.  In the first quarter, the portfolio gained +8.5% on a net basis, well above R2000V’s advance of +2.9% and above R2500V’s rise of +6.1%. The largest contribution to the gains on the portfolio was the Energy holdings. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Bernzott Capital Advisors US Small Cap Value Fund featured stocks like MP Materials Corp. (NYSE:MP) in its Q1 2024 investor letter. Headquartered in Las Vegas, Nevada, MP Materials Corp. (NYSE:MP) produces rare earth materials. On April 24, 2024, MP Materials Corp. (NYSE:MP) stock closed at $15.74 per share. One-month return of MP Materials Corp. (NYSE:MP) was 10.07%, and its shares lost 27.20% of their value over the last 52 weeks. MP Materials Corp. (NYSE:MP) has a market capitalization of $2.609 billion.

Bernzott Capital Advisors US Small Cap Value Fund stated the following regarding MP Materials Corp. (NYSE:MP) in its first quarter 2024 investor letter:

“Materials were the leading detractors to performance. Our exposure to MP Materials Corp. (NYSE:MP) was the main culprit, as the stock declined by 28% as prices for their critical commodity output NdPr exhibited weakness due to seasonality factors and lower demand from Electric Vehicles and other industrial applications. Despite the sell-off, we increased our position in the stock as we believe the long-term fundamentals remain intact.”

Heavy machinery at work in a mining facility, excavating the earth for rare earth minerals.

MP Materials Corp. (NYSE:MP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, MP Materials Corp. (NYSE:MP) was held by 26 hedge fund portfolios, compared to 26 in the previous quarter, according to our database.

We previously discussed MP Materials Corp. (NYSE:MP) in another article, where we shared the list of best battery stocks to invest in before they take off. 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.