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Will 2024 be a Transformational Year for NexGen Energy Ltd. (NXE)?

GreenWood Investors LLC, an investment management firm, released its annual 2023 investor letter. A copy of the same can be downloaded here. 2023 was excellent for the fund’s investors, thanks to the collaborative and constructive engagements, which added immense value to the performance. Despite that, the firm is still seeking more challenges to continue to drive forward. As for the 2023 returns, its separate accounts, open to any investor, delivered a remarkable return of 28.0%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

GreenWood Investors featured stocks such as NexGen Energy Ltd. (NYSE:NXE) in the fourth quarter 2023 investor letter. Headquartered in Vancouver, Canada, NexGen Energy Ltd. (NYSE:NXE) is an exploration and development stage company. On February 7, 2024, NexGen Energy Ltd. (NYSE:NXE) stock closed at $7.93 per share. One-month return of NexGen Energy Ltd. (NYSE:NXE) was 12.48%, and its shares gained 67.30% of their value over the last 52 weeks. NexGen Energy Ltd. (NYSE:NXE) has a market capitalization of $4.161 billion.

GreenWood Investors stated the following regarding NexGen Energy Ltd. (NYSE:NXE) in its fourth quarter 2023 investor letter:

"Rounding out the top five positions in the portfolio, which account for 69% of our net exposure, we are excited that Bolloré (BOL FP, exposure largely through Compagnie de l’Odet) and NexGen Energy Ltd. (NYSE:NXE are finally hitting their stride after a multi-year period leading up to a pivotal 2024. While these are not new positions for us, and perhaps at times we may have sounded like a broken record discussing these investments while the stocks remained flat-lined, 2024 will be a transformational year for both companies.

In our view, the company’s leading Arrow deposit has the potential to be for uranium mining what Saudi Arabia is for oil considering its economics. As Uranium prices have now surpassed $100 per pound, using today’s spot rate would mean that once Arrow is fully operational, the free-cash-flow of the company will be north of $1.6 billion. With the fully diluted market cap today at a mere $4.6 billion, we would prefer to remain invested as co-founder and CEO Leigh Curyer builds his mine. Just as he discussed with us in his first zoom with our investors a couple years ago, his priority had been first and foremost, the company’s people. Only after, was it process-oriented, and then again, only after he got these two right, did he focus on the project — or the outcome.

While we believe NexGen Energy will likely receive a takeover offer once the government of Canada fully approves its world-class uranium mine, we would prefer to not benefit from a quick take-out…” (Click here to read the full text)

An aerial view of a nuclear plant, its domes casting a unique shadow.

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NexGen Energy Ltd. (NYSE:NXE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held NexGen Energy Ltd. (NYSE:NXE) at the end of third quarter which was 19 in the previous quarter.

We discussed NexGen Energy Ltd. (NYSE:NXE) in another article and shared the list of best nuclear energy stocks to buy. 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.