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Longleaf Partners Global: “CNX Resources (CNX) was a Strong Contributor”

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Jose Karlo Mari Tottoc
·3 min read
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Longleaf Partners Global Fund, an independent investment management firm, published its fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 17.46% was recorded by the fund in the fourth quarter of 2020, outperforming its MSCI World benchmark that delivered a 13.96% return in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Longleaf Partners Global Fund, in their Q4 2020 investor letter, mentioned CNX Resources Corporation (NYSE: CNX) and emphasized their views on the company. CNX Resources Corporation is a Canonsburg, Pennsylvania-based natural gas company that currently has a $3.4 billion market capitalization. Since the beginning of the year, CNX delivered a 44.63% return, impressively extending its 12-month gains to 210.54%. As of March 26, 2021, the stock closed at $15.62per share.

Here is what Longleaf Partners Global Fund has to say about CNX Resources Corporation in their Q4 2020 investor letter:

"CNX (22%, 1.57%; 14%, 0.58%), the natural gas company, was also a strong contributor, after having been noted in our 2019 year-end letter as a “problem child.” The company reported strong free-cash flow and earnings before interest rate, tax, depreciation and amortization (EBITDA) growth in the first half. In addition to its positive absolute performance, CNX has been a strong relative contributor versus the S&P 500 for which Energy was by far the worst performing sector in the year. In October, Bloomberg reported that Appalachian neighbor EQT approached CNX with a merger offer. CEO Nick DeIuliis and Chairman Will Thorndike are focused on their company’s value per share and will do the right thing for shareholders. CNX has the potential to both pay down debt with its hedged FCF and resume repurchases to grow FCF/share during an extreme energy bear market."

Pixabay/Public Domain

Our calculations show that CNX Resources Corporation (NYSE: CNX) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, CNX Resources Corporation was in 25 hedge fund portfolios, compared to 33 funds in the third quarter. CNX delivered a 36.30% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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Disclosure: None. This article is originally published at Insider Monkey.