L1 Capital, an investment management firm, released its “L1 Long Short Fund” second quarter 2024 investor letter. Over the quarter, global markets were mixed, with several themes impacting key markets. A copy of the letter can be downloaded here. The portfolio returned 0.7% for the quarter compared to (1.1%) for S&P/ASX 200 AI. Year-to-date the portfolio returned 8.2% compared to 4.2% for the index. Over the past three years, the portfolio return was 11.9% p.a compared to 6.4% p.a. for the index. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.

L1 Long Short Fund highlighted stocks like NexGen Energy Ltd. (NYSE:NXE), in the second quarter 2024 investor letter. NexGen Energy Ltd. (NYSE:NXE) is an exploration and development stage company. The one-month return of NexGen Energy Ltd. (NYSE:NXE) was -5.20%, and its shares gained 43.40% of their value over the last 52 weeks. On July 17, 2024, NexGen Energy Ltd. (NYSE:NXE) stock closed at $6.74 per share with a market capitalization of $3.787 billion.

L1 Long Short Fund stated the following regarding NexGen Energy Ltd. (NYSE:NXE) in its Q2 2024 investor letter:

"NexGen Energy Ltd. (NYSE:NXE) (Long -10%) weakened as uranium prices fell -7% over the quarter. We continue to see the uranium market as having positive fundamental supply/demand tailwinds over the medium to long term. NexGen is preparing to develop the world’s largest undeveloped uranium deposit, Arrow, located in Saskatchewan, Canada. This would be a major, new, strategic Western source to address the anticipated uranium market deficit. We anticipate that NexGen will have completed all regulatory requirements over the course of 2024, providing a clear pathway to full scale construction of the project. Arrow has the potential to generate more than C$2b of cash flow annually, once developed (2028) – a highly attractive proposition given NexGen’s current market cap of ~C$5.5b."

A miner in a hard hat and apron holding a piece of uranium ore in the Athabasca Basin, Saskatchewan.

NexGen Energy Ltd. (NYSE:NXE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held NexGen Energy Ltd. (NYSE:NXE) at the end of the first quarter which was 31 in the previous quarter. While we acknowledge the potential of NexGen Energy Ltd. (NYSE:NXE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.