Greenlight Capital, an investment management company, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. For 2022, the fund returned 36.6% net of fees and expenses compared to an 18.1% loss for the S&P 500 Index. 2022 was an exceptionally good year for the strategy as the market environment was favorable, and the firm expects attractive, absolute, and risk-adjusted returns to be achieved over the long term. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Greenlight Capital highlighted stocks like Teck Resources Limited (NYSE:TECK) in the Q4 2022 investor letter. Headquartered in Vancouver, Canada, Teck Resources Limited (NYSE:TECK) is in the business of natural resources exploration, development and production. On January 17, 2023, Teck Resources Limited (NYSE:TECK) stock closed at $40.84 per share. One-month return of Teck Resources Limited (NYSE:TECK) was 5.72%, and its shares gained 18.17% of their value over the last 52 weeks. Teck Resources Limited (NYSE:TECK) has a market capitalization of $20.809 billion.
Greenlight Capital made the following comment about Teck Resources Limited (NYSE:TECK) in its Q4 2022 investor letter:
“Teck Resources Limited (NYSE:TECK) benefited from higher metallurgical coal prices and the anticipation of its new copper mine coming on line around the end of 2022. During the year, the shares advanced from $28.82 to $37.82. 2022 earnings are expected to be $7.15, well above the $4.68 estimated at the beginning of the year. In 2023, current consensus assumes lower metallurgical coal prices and lower earnings of $4.20 per share. The outlook for 2024 is better, as TECK will have scaled production at the new copper mine. Even so, consensus estimates assume even lower commodity prices and sit at $4.13 of EPS. Though the estimates rely on commodity prices that are quite difficult to predict, we expect that higher copper prices should drive upside surprises. Even without that, the shares remain inexpensive at only 9x 2023 consensus earnings. Finally, with the large capital project completed, we expect sizable capital returns to shareholders in the near term.”
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Teck Resources Limited (NYSE:TECK) is not on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 47 hedge fund portfolios held Teck Resources Limited (NYSE:TECK) at the end of the third quarter, which was 46 in the previous quarter. 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.
