Cenovus Energy (CVE) Surged as WTI Oil Prices Rose
L1 Capital, an investment management firm, released its “L1 Long Short Fund” third quarter 2023 investor letter, a copy of the same can be downloaded here. Equity markets across the globe had a promising start in July as constructive economic data strengthened investor hopes for a smooth landing in the US. However, the markets took a sharp dive in August and September, more than negating the positive early start to the quarter. The surge in long-term bond yields affected investor sentiment, while weaker Chinese economic data also weighed heavily on the markets. Against this backdrop, the portfolio returned 1.0% (ASX200AI -0.8%) for the September quarter and 21.9% (ASX200AI 13.5%) over the past year. Please check the top five holdings of the fund to know its best picks in 2023.
L1 Long Short Fund highlighted stocks like Cenovus Energy Inc. (NYSE:CVE) in the third quarter 2023 investor letter. Headquartered in Calgary, Canada, Cenovus Energy Inc. (NYSE:CVE) is an energy company that engages in the provision of gas and oil. On October 30, 2023, Cenovus Energy Inc. (NYSE:CVE) stock closed at $19.16 per share. One-month return of Cenovus Energy Inc. (NYSE:CVE) was -4.30%, and its shares lost 6.58% of their value over the last 52 weeks. Cenovus Energy Inc. (NYSE:CVE) has a market capitalization of $36.338 billion.
L1 Long Short Fund made the following comment about Cenovus Energy Inc. (NYSE:CVE) in its Q3 2023 investor letter:
"Cenovus Energy Inc. (NYSE:CVE) (Long +23%) shares rallied as WTI oil prices rose to ~US$91/bbl over the month, the highest level since November 2022. The company also had tailwinds from higher refinery margins, particularly in North America which remains their key exposure. Cenovus continues to generate strong free cash flow at current oil price levels, with the long-life nature of its oil sands assets and its low cost of production providing a break-even oil price at around ~US$40/bbl. We estimate the company can reach its net debt target in early CY24, enabling a step-up in shareholder returns through on-market share buybacks."
A fleet of oil tankers at sea, representing the global reach of a crude oil supplier.
Cenovus Energy Inc. (NYSE:CVE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Cenovus Energy Inc. (NYSE:CVE) at the end of second quarter which was 36 in the previous quarter.
We previously discussed Cenovus Energy Inc. (NYSE:CVE) in another article and shared a list of best Canadian stocks to buy and hold. In addition, please check out our hedge fund investor letters Q3 2023 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.
