Hallador Energy (HNRG): The Biggest Contributor of Cove Street Capital
Investment management company Cove Street Capital recently released its “Small Cap Value Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the fund returned 18.33% compared to 16.93% for the Russell 2000 Index and 15.26% for the Russell 2000 Value Index. The fund returned 8.35% in the fourth quarter compared to 14.03% and 15.26% for the indexes, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
In its Q4 2023 investor letter, Cove Street Capital featured stocks such as Hallador Energy Company (NASDAQ:HNRG). Headquartered in Terre Haute, Indiana, Hallador Energy Company (NASDAQ:HNRG) engages in the production of steam coal. On January 5, 2024, Hallador Energy Company (NASDAQ:HNRG) stock closed at $9.28 per share. One-month return of Hallador Energy Company (NASDAQ:HNRG) was -17.14%, and its shares lost 6.07% of their value over the last 52 weeks. Hallador Energy Company (NASDAQ:HNRG) has a market capitalization of $307.561 million.
Cove Street Capital stated the following regarding Hallador Energy Company (NASDAQ:HNRG) in its fourth quarter 2023 investor letter:
"Hallador Energy Company (NASDAQ:HNRG) is one of three energy-related stocks in the portfolio and was our biggest contributor through the third quarter. Like all energy stocks, internal competence gets trumped by the price of the commodity, and warmer weather plus the lack of global disasters in Ukraine and the Middle East put the hurt on pricing. We again took some profits at materially higher levels than current prices. We continue to advocate cautiously that demand for carbon energy is a lot stickier than many would like, and a sufficient and steady supply of alternatives is a lot harder to produce than many would like. We think this produces a higher and steadier set of profit fundamentals for Hallador via its coal mining and power production, for CNX Resources (Ticker: CNX) via its natural gas resources and Vitesse Energy (Ticker: VTS) via its predominantly oil resources. All of these are domestic sources of energy."
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Hallador Energy Company (NASDAQ:HNRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held Hallador Energy Company (NASDAQ:HNRG) at the end of third quarter which was 9 in the previous quarter.
We discussed Hallador Energy Company (NASDAQ:HNRG) in another article and shared Cove Street Capital's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.
