Freeport-McMoRan Inc (NYSE:FCX) shares have jumped 5% after Reuters reported that Freeport’s Indonesian segment ‘is close to reaching a deal’ to temporarily resume exports of copper concentrate for the next six months from the giant Grasberg mine. Indonesia had previously halted Freeport’s exports of copper concentrate in January due to the nation wanting to renegotiate contracts to benefit the country. Some bulls think the event signals that Freeport-McMoRan could be closer to an agreement with Indonesia in terms of Grasberg. Uncertainty over the Grasberg mine has hurt sentiment around Freeport-McMoRan Inc (NYSE:FCX), whose shares have arguably lagged behind some other potential ‘Trump infrastructure plays’.
What Does The Smart Money Sentiment Say?
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).
According to our data, 43 top funds (out of the 742 we track) were long Freeport-McMoRan Inc (NYSE:FCX) at the end of December, up 7 funds from the previous quarter. David Halpert‘s Prince Street Capital Management and Robert Bishop‘s Impala Asset Management both initiated new stakes in Q4 of 2.9 and 10.9 million shares, respectively.
The Bottom Line
Freeport-McMoRan Inc (NYSE:FCX) is rallying today due to news reports that the company is closer to potentially resuming exports of copper from the company’s giant Grasberg mine for at least six months. Any exports would presumably add to Freeport-McMoRan Inc (NYSE:FCX)’s cash flow. For those of you interested, check out this interesting article about the countries that produce the most copper.