Is Cameco Corporation (CCJ) a Good Long-Term Bet?
Aristotle Capital Management, LLC, an investment management company, released its “Global Equity Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned ‐6.75% gross of fees, compared to a ‐6.19% return for the MSCI World Index and ‐6.82% return for the MSCI ACWI Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Aristotle Capital highlighted stocks like Cameco Corporation (NYSE:CCJ) in its Q3 2022 investor letter. Headquartered in Saskatoon, Canada, Cameco Corporation (NYSE:CCJ) is a uranium-producing company. On November 29, 2022, Cameco Corporation (NYSE:CCJ) stock closed at $23.31 per share. One-month return of Cameco Corporation (NYSE:CCJ) was -1.35%, and its shares gained 3.56% of their value over the last 52 weeks. Cameco Corporation (NYSE:CCJ) has a market capitalization of $10.144 billion.
Aristotle Capital made the following comment about Cameco Corporation (NYSE:CCJ) in its Q3 2022 investor letter:
"Cameco Corporation (NYSE:CCJ), the world’s largest publicly traded uranium producer, was the top contributor for the quarter. In order to pivot away from a reliance on Russian energy without jeopardizing net‐zero commitments, policymakers and businesses have (finally) turned their attention toward nuclear power generation. Germany extended the life of two nuclear power plants, and Japan announced it will look at extending the life of existing reactors, restart additional idle reactors and look at developing next‐generation reactors. These shifts in energy policies have increased demand at a time of tight supply. Although such market dynamics will likely favor Cameco in the short term, we believe the company’s continued focus on supply discipline will help ensure long‐term success as well. By obtaining long‐term contracts and slowly ramping production, we believe Cameco is well positioned in the changing energy landscape. The company has already recorded 45 million pounds in new long‐term uranium contracts this year, with additional contract discussions underway. Furthermore, Cameco increased its ownership in Cigar Lake by 4.52%, bringing its ownership stake to 54.55%. This ownership expansion, combined with investment in operational readiness for McArthur River/Key Lake, should allow the company to continue to meet utility customers’ changing and growing long‐term demand. This sets the stage for Cameco to execute on our catalyst of increasing its uranium volume sold at higher prices, all while lowering production costs through scale and its access to some of the highest‐grade ore on the planet."
Image by Markus Distelrath from Pixabay
Cameco Corporation (NYSE:CCJ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Cameco Corporation (NYSE:CCJ) at the end of the third quarter, which was 40 in the previous quarter.
We discussed Cameco Corporation (NYSE:CCJ) in another article and shared the best annual dividend stocks to invest in. In addition, please check out our hedge fund investor letters Q3 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.
