Top 10 Stock Picks of David Iben’s Kopernik Global Investors

In this article, we discuss the top 10 stock picks of David Iben’s Kopernik Global Investors.

David Iben is the founder and Chief Investment Officer at Kopernik Global Investors. The Florida-based hedge fund is named after Mikolaj Kopernik, better known as Nicolas Copernicus, the Renaissance-era scientist and philosopher who discovered that the Earth was not indeed the center of the Universe, much to the retaliation and scorn of his contemporaries. Kopernik Global Investors now seeks to emulate the same visionary traits of its namesake scientist and create investors who can rely on their instincts and analyses to beat the market.

Prior to founding Kopernik Global in 2013, Iben was a director and head of the Global Value Team at Vinik Asset Management. Before that, David Iben was the lead portfolio manager, co-founder, and chief investment officer at Tradewinds Global Investors, LLC, which managed $38 billion as of February 2012. Iben’s career started at Farmers Group, Inc., where he worked for 14 years, starting from securities analyst to eventually becoming lead portfolio manager and director of research, managing $16 billion in assets in 1996 when he moved on to Cramblit & Carney as a senior portfolio manager. David Iben has a bachelor’s degree from the University of California, and an MBA from the University of Southern California Marshall School of Business. He has also earned a CFA designation.

As of the end of the third quarter, Kopernik Global Investors manages approximately $946 million in assets, which is an increase of 1% over the previous quarter. The hedge fund invests primarily in global corporate equity and acts through a fundamentals-based, value-oriented process that is driven by extensive research. Kopernik Global seeks to identify stocks that are trading below their intrinsic value, and has majority holdings in the Basic Materials segment, betting on increasing commodities prices heading into 2022. Some of the most notable stocks in David Iben’s portfolio include Sprott Inc. (NYSE:SII), Royal Gold, Inc. (NASDAQ:RGLD), and KT Corporation (NYSE:KT), among others discussed in detail below.

David Iben of Kopernik Global Investors

In this article, we’ll focus on the top 10 holdings of David Iben’s Kopernik Global Investors.

Our Methodology

13F filings for the third quarter of 2021 were used to compile the following list. Hedge fund sentiment around each stock was derived using Insider Monkey’s database of 867 elite hedge funds.

With this context in mind, let’s now discuss our list of the top 10 stock picks of David Iben’s Kopernik Global Investors.

Top 10 Stock Picks of David Iben’s Kopernik Global Investors

10. Royal Gold, Inc. (NASDAQ:RGLD)

Kopernik Global Investors’ Stake Value: $22.64 million

Percentage of Kopernik Global Investors’ 13F Portfolio: 2.54%

Number of Hedge Fund Holders: 21

Starting off this list is Royal Gold, Inc. (NASDAQ:RGLD), a firm that deals in the acquisition and management of business interests related to precious metals. It is based in Colorado and operates 187 properties in five continents around the globe. As of September, David Iben’s Kopernik Global Investors owned approximately 237,000 shares in Royal Gold, Inc. (NASDAQ:RGLD), representing 2.54% of the fund’s overall portfolio. This is down 4% as compared to Q2 2021, where the fund held 247,000 shares in the company.

In late November, BofA analyst Michael Jalonen upgraded Royal Gold, Inc. (NASDAQ:RGLD) to ‘Neutral’ from ‘Underperform’, revising the price target to $125 from $108.75. Jalonen noted that the company has recently entered a growth phase and also increased its annual dividend yield.

Hedge fund sentiment is bullish on Royal Gold, Inc. (NASDAQ:RGLD), with 21 hedge funds holding positions in the company at the end of the third quarter, up from 20 in Q2 2021.

In addition to Sprott Inc. (NYSE:SII) and KT Corporation (NYSE:KT), Royal Gold, Inc. (NASDAQ:RGLD) is a top stock on the radar of investors.

Investment firm Argosy Investors talked about many stocks in its Q1 2021 investor letter, and Royal Gold, Inc. (NASDAQ:RGLD) was one of them. Here’s what the fund said:

“Gold royalties business achieve 2 objectives for us: 1) It’s a good business model with strong returns through the gold price cycle; and 2) it provides some protection from inflation, should it materialize due to the increasingly loose fiscal and monetary policy decisions the United States (and other developed market economies) is making.

I don’t want to stay on my soapbox for too long, but this is the first time in history that I’m aware of politicians openly stating that debt levels don’t matter, even in the long term. In 2019, the government spent $4.4 trillion. Of those expenditures, $0.4 trillion was spent making interest payments on existing debt at the time of $16.9 trillion. The interest rate on that debt was 2.4%. Debt for 2021 is projected to increase to $22.5 trillion, and then to $33 trillion by the end of the decade…” (Click here to see the full text)

9. Harmony Gold Mining Company Limited (NYSE:HMY)

Kopernik Global Investors’ Stake Value: $22.86 million

Percentage of Kopernik Global Investors’ 13F Portfolio: 2.56%

Number of Hedge Fund Holders: 5

Harmony Gold Mining Company Limited (NYSE:HMY) is up next on the list of top stocks to buy according to David Iben’s Kopernik Global Investors. The South African company deals in the exploration and mining of gold and other minerals around the world. According to regulatory filings for the third quarter, Kopernik Global Investors owns 7.2 million shares in Harmony Gold Mining Company Limited (NYSE:HMY), up 137% from the previous quarter where the fund held roughly 3 million shares in the company.

Shares of Harmony Gold Mining Company Limited (NYSE:HMY) have slumped 12.68% in the last 12 months, amid a decline in gold prices in 2021. Still, Harmony Gold Mining Company Limited (NYSE:HMY) reported a 32% increase in gold production in the third quarter and a 23% decrease in its net debt.

Hedge fund sentiment was negative on Harmony Gold Mining Company Limited (NYSE:HMY) in the third quarter, where 5 hedge funds held stakes in the company, as compared to 11 hedge funds a quarter ago. Cliff Asness’ AQR Capital Management is the leading shareholder of Harmony Gold Mining Company Limited (NYSE:HMY) stock, with 18.27 million shares valued at $57.57 million.

8. NovaGold Resources Inc. (NYSE:NG)

Kopernik Global Investors’ Stake Value: $32.75 million

Percentage of Kopernik Global Investors’ 13F Portfolio: 3.67%

Number of Hedge Fund Holders: 16

NovaGold Resources Inc. (NYSE:NG) is a Canadian company that develops metal properties primarily in Alaska and British Columbia. The company’s current flagship project is the development and operation of the Donlin Gold mine in Alaska. Kopernik Global Investors reported owning 4.76 million shares in NovaGold Resources Inc. (NYSE:NG) at the end of the third quarter, representing 3.67% of the fund’s total holdings. This is an increase of 4% from Q2 2021 where the fund owned 4.57 million shares in the company.

NovaGold Resources Inc. (NYSE:NG) disclosed its third-quarter earnings in late September and reported earnings per share of -$0.04, which was in line with analysts’ estimates.

As of the third quarter, 16 out of 867 elite hedge funds tracked by Insider Monkey reported ownership of stakes in NovaGold Resources Inc. (NYSE:NG), with a combined value of $247.86 million. This shows a downward trend from last quarter where 18 hedge funds held roughly $292 million worth of stakes in the company. With 22.2 million shares, Paulson & Co is the leading shareholder in NovaGold Resources Inc. (NYSE:NG), with holdings valued at $152.9 million.

7. Seabridge Gold Inc. (NYSE:SA)

Kopernik Global Investors’ Stake Value: $35.71 million

Percentage of Kopernik Global Investors’ 13F Portfolio: 4%

Number of Hedge Fund Holders: 10

Seabridge Gold Inc. (NYSE:SA) is another gold mining company found in the portfolio of Kopernik Global Investors, which reported owning 2.3 million shares in the Toronto-based company at the end of September, representing 4% of the fund’s overall holdings. The company operates gold properties in North America and also explores for copper, silver, rhenium, and molybdenum ores.

Out of all the hedge funds tracked by Insider Monkey, 10 had bullish bets on Seabridge Gold Inc. (NYSE:SA) in the third quarter, down from 11 in the preceding quarter.

In December, Seabridge Gold Inc. (NYSE:SA) bought the Snowfield gold property in British Columbia from Pretium Resources (NYSE:PVG) in a deal that includes $100 million cash, 1.5% net smelter royalty on all production, and a $20 million future contingent payment.

6. Sprott Inc. (NYSE:SII)

Kopernik Global Investors’ Stake Value: $48.06 million

Percentage of Kopernik Global Investors’ 13F Portfolio: 5.39%

Number of Hedge Fund Holders: 13

Sprott Inc. (NYSE:SII) is an asset management company based in Toronto, and operates through its segments: Exchange Listed Products, Lending, Managed Equities, Brokerage, and Corporate. David Iben’s Kopernik Global Investors is the leading shareholder of Sprott Inc. (NYSE:SII) stock, disclosing ownership of 1.3 million shares at the end of the third quarter, worth $48.06 million which represents 5.39% of the fund’s total holdings.

On November 8, TD Securities analyst Graham Ryding maintained a ‘Buy’ rating on Sprott Inc. (NYSE:SII) shares, raising the price target to C$61 from C$56.

Investors were seen loading up on Sprott Inc. (NYSE:SII) shares. In Q3 2021, 13 hedge funds held stakes worth $145.32 million in the company, in comparison to 9 hedge funds holding $140.4 million worth of stakes in the company in Q2.

In addition to KT Corporation (NYSE:KT) and Royal Gold, Inc. (NASDAQ:RGLD), Sprott Inc. (NYSE:SII) is an exciting stock for investors.

5. Range Resources Corporation (NYSE:RRC)

Kopernik Global Investors’ Stake Value: $79.24 million

Percentage of Kopernik Global Investors’ 13F Portfolio: 8.89%

Number of Hedge Fund Holders: 25

Range Resources Corporation (NYSE:RRC) is up next on our list of the top stock picks of David Iben’s Kopernik Global Investors. According to 13F filings for the third quarter, David Iben owns 3.5 million shares worth $79.24 million in Range Resources Corporation (NYSE:RRC), amounting to an 8.89% slice of his overall portfolio.

25 hedge funds had bullish bets on the company shares at the end of the third quarter, holding stakes worth roughly $527 million. With 4.74 million shares, SailingStone Capital Partners is the leading shareholder of Range Resources Corporation (NYSE:RRC) stock at the close of the third quarter.

On January 3, Mizuho analyst Vincent Lovaglio lowered the firm’s price target on Range Resources Corporation (NYSE:RRC) to $24 from $28, and reiterated a ‘Neutral’ rating on the company shares, noting that price target was lowered taking into account lower price expectations for natural gas in 2022 and 2023, although he believes the energy sector is “poised for another year of outperformance” in comparison to the broader market.

4. Southwestern Energy Company (NYSE:SWN)

Kopernik Global Investors’ Stake Value: $97.88 million

Percentage of Kopernik Global Investors’ 13F Portfolio: 10.98%

Number of Hedge Fund Holders: 22

Southwestern Energy Company (NYSE:SWN) is a Texas-based energy company that deals in oil, natural gas, and natural gas liquids (NGLs).

On January 3, Mizuho analyst Vincent Lovaglio reiterated a ‘Buy’ rating on Southwestern Energy Company (NYSE:SWN) shares, and lowered the price target to $7 from $8, noting that the energy segment was well-positioned for yet another year of outperformance.

Kopernik Global Investors reported owning 17.66 million shares in Southwestern Energy Company (NYSE:SWN) at the end of the third quarter, with a combined value of $97.88 million which represents 10.98% of the fund’s total holdings. 22 hedge funds out of 867 tracked by Insider Monkey were long Southwestern Energy Company (NYSE:SWN) at the end of Q3 2021, down from 27 in the quarter before.

3. KT Corporation (NYSE:KT)

Kopernik Global Investors’ Stake Value: $106.48 million

Percentage of Kopernik Global Investors’ 13F Portfolio: 11.95%

Number of Hedge Fund Holders: 12

According to regulatory filings for the third quarter, KT Corporation (NYSE:KT) was the third-largest holding of Kopernik Global Investors, with 7.81 million shares valued at $106.48 million, which accounts for 11.95% of the fund’s overall portfolio. This is an increase of 14% over the preceding quarter, where Kopernik Global held 6.89 million shares in the company.

KT Corporation (NYSE:KT) is a provider of integrated telecommunication services and is based in South Korea. It also provides internet, media content and software development services.  The company’s revenue for Q3 stood at $3.94 billion, which was above estimates by $30.61 million.

In December, KT Corporation (NYSE:KT) announced a $5 million equity investment in NeuroSigma, which is the maker of the first device-based, non-drug therapy to treat pediatric ADHD approved by the FDA.

Out of all the hedge funds tracked by Insider Monkey, 12 reported holding stakes in KT Corporation (NYSE:KT) at the close of the third quarter, with a combined value of $166.76 million. This is down from 14 hedge funds holding stakes worth $181.36 million in the company in Q2 2021.

Investment firm Bonhoeffer Capital Management talked about KT Corporation (NYSE:KT) in its Q1 2021 investor letter. Here’s what the fund said:

“For one of our telecom holdings, KT Corp, we are seeing signs of corporate actions (such as spinoff and JVs) in both foreign comparables (as described above for TI) and domestic competitors like SK Telecom, which recently announced spinoff plans for its non-telecom assets. As mentioned previously, KT has a treasure trove of non-telecom assets, like real estate and media content, that could be spun off. KT has also announced a share buyback of 5% of its stock and returning 50% of its net profits as dividends to shareholders, in addition to investing in growth strategies. In my opinion, these changes are not reflected in the current stock price.”

2. Turquoise Hill Resources Ltd. (NYSE:TRQ)

Kopernik Global Investors’ Stake Value: $169.81 million

Percentage of Kopernik Global Investors’ 13F Portfolio: 19.05%

Number of Hedge Fund Holders: 10

Turquoise Hill Resources Ltd. (NYSE:TRQ) is a Canadian mining company that explores copper, gold, and silver deposits.

David Iben’s Kopernik Global Investors owns 11.5 million shares in Turquoise Hill Resources Ltd. (NYSE:TRQ), as reported by filings for the third quarter. This represents 19.05% of the fund’s overall portfolio and is an increase of 15% over Q2 2021 where the fund held 10.05 million shares in the company.

On January 10, Canaccord analyst Dalton Baretto upgraded Turquoise Hill Resources Ltd. (NYSE:TRQ) to ‘Hold’ from ‘Sell’, revising the price target to C$21 from C$12.50. Baretto cited the positive outlook on commodities in 2022 and the company’s pending agreement with the Mongolian government to restructure their mining contract as reasons for the upgrade. In partnership with Rio Tinto (NYSE:RIO) and the Mongolian government, Turquoise Hill Resources Ltd. (NYSE:TRQ) operates the Oyu Tolgoi gold and copper mine in Mongolia.

As of the third quarter, 10 out of 867 elite hedge funds tracked by Insider Monkey reported owning shares in Turquoise Hill Resources Ltd. (NYSE:TRQ), worth roughly $563 million. With 18.7 million shares valued at $276 million, Pentwater Capital Management is the leading shareholder in Turquoise Hill Resources Ltd. (NYSE:TRQ).

1. Cameco Corporation (NYSE:CCJ)

Kopernik Global Investors’ Stake Value: $194.86 million

Percentage of Kopernik Global Investors’ 13F Portfolio: 21.87%

Number of Hedge Fund Holders: 35

With approximately 9 million shares valued at $194.86 million and representing 21.87% of its overall portfolio, Cameco Corporation (NYSE:CCJ) is the largest holding of David Iben’s Kopernik Global Investors in the third quarter of 2021. This holding shows a decrease of 3% over the previous quarter.

Cameco Corporation (NYSE:CCJ) is a mining company based in Saskatoon, Canada, that deals in the provision of Uranium. On November 3, BofA analyst Lawson Winder upgraded Cameco Corporation (NYSE:CCJ) to ‘Buy’ from ‘Neutral’, upping the price target to C$40 from C$36.25. The analyst cited a bullish outlook on uranium prices in 2022, and the rising acceptability of nuclear energy as an alternative to carbon sources as reasons for his upgrade.

You can also take a look at 10 Best Stock Picks and Investments Of Billionaire Chamath Palihapitiya and 11 Best Natural Gas Stocks To Buy Now.

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