What Makes CNX Resources Corporation (CNX) an Attractive Investment?
Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund delivered an 8.63% return, compared to a 7.56% return for the S&P Index and a 12.42% return for the Russell 1000 Value Index. For 2022, the fund was 23.25% down while, the S&P 500 fell 18.11% and the Russell 1000 Value Index returned -7.54%. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Longleaf Partners Fund highlighted stocks CNX Resources Corporation (NYSE:CNX) in the Q4 2022 investor letter. Headquartered in Canonsburg, Pennsylvania, CNX Resources Corporation (NYSE:CNX) is a natural gas and midstream company. On February 7, 2023, CNX Resources Corporation (NYSE:CNX) stock closed at $16.18 per share. One-month return of CNX Resources Corporation (NYSE:CNX) was -0.49%, and its shares gained 7.22% of their value over the last 52 weeks. CNX Resources Corporation (NYSE:CNX) has a market capitalization of $2.753 billion.
Longleaf Partners Fund made the following comment about CNX Resources Corporation (NYSE:CNX) in its Q4 2022 investor letter:
“CNX Resources Corporation (NYSE:CNX) - CNX was the top contributor for the year, but we were surprised it wasn’t an even larger one. Its value per share strongly outgrew its price performance for the year. While all energy companies saw a boost from higher prices, CNX had previously done more price hedging than peers. This decision held back near-term reported earnings, which remain the market’s focus. This helped relative returns at unhedged and more leveraged companies that were hoping for higher prices. CNX has been taking advantage of a widening price-to-value gap for itself as the year went on by continuing to be one of our largest share repurchasers. When you combine strong capital allocation like this with geopolitical conflict solidifying the long-term value of North American natural gas while hedges roll off with the passage of time, we remain excited about CNX’s future.”
CNX Resources Corporation (NYSE:CNX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held CNX Resources Corporation (NYSE:CNX) at the end of the third quarter, which was 37 in the previous quarter.
We discussed CNX Resources Corporation (NYSE:CNX) in another article and shared Longleaf Partners Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.