Is it a Good Time to Add Freeport-McMoRan (FCX) to Your Portfolio?
Diamond Hill Capital, an investment advisor, released its “Mid Cap Strategy” second quarter 2022 investor letter. A copy of the same can be downloaded here. The second quarter was challenging for US stocks and the Russell 1000 Index fell -16.7%. The fund generated negative returns in the quarter but outperformed the Russell 2500 Index. Technology holdings and the portfolio’s below-benchmark positioning contributed to the fund’s relative performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best choices in 2022.
Diamond Hill Capital discussed stocks like Freeport-McMoRan Inc. (NYSE:FCX) in the second quarter 2022 investor letter. Headquartered in Phoenix, Arizona, Freeport-McMoRan Inc. (NYSE:FCX) is a mining company. On September 30, 2022, Freeport-McMoRan Inc. (NYSE:FCX) stock closed at $27.33 per share. One-month return of Freeport-McMoRan Inc. (NYSE:FCX) was -3.43% and its shares lost 16.78% of their value over the last 52 weeks. Freeport-McMoRan Inc. (NYSE:FCX) has a market capitalization of $39.062 billion.
Here is what Diamond Hill Capital specifically said about Freeport-McMoRan Inc. (NYSE:FCX) in its Q2 2022 investor letter:
"In Q1, shares of copper-focused mining company Freeport-McMoRan Inc. (NYSE:FCX) were up meaningfully with other copper producers on rising demand for conductive metals and supply risk concerns from Russia. Despite reporting excellent Q1 results, management raised its cost guidance for the year, attributing it to rising fuel costs and inflation of other materials. Freeport’s share price declined in Q2 with other large miners as a result, and we think the response by market participants is overdone. The company continues to generate strong free cash flow, which it has returned to shareholders in the form of dividends and buybacks. We also remain attracted to Freeport’s unique exposure to high-quality copper producing mines, which is a key industrial input, particularly for green technologies, and we believe it’s a strong business oriented toward strengthening end markets."
Photo by Stephen Philpott on Unsplash
Freeport-McMoRan Inc. (NYSE:FCX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Freeport-McMoRan Inc. (NYSE:FCX) at the end of the second quarter which was 68 in the previous quarter.
We discussed Freeport-McMoRan Inc. (NYSE:FCX) in another article and shared the best commodity stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
