Investment management company Kingdom Capital Advisor released its second quarter, 2022 investor letter recently. A copy of the same can be downloaded here. At the end of the second quarter, the fund returned -11.32% net of fees compared to -16% for the S&P Index and -17% for the Russell Index. Year-to-date the fund returned 16.9% net of fees. Kingdom Capital is always focused on identifying the opportunities in undervalued small-cap stocks. For more information on the fund’s top picks in 2022, please check its top five holdings.
Kingdom Capital Advisor mentioned Arch Resources, Inc. (NYSE:ARCH) in the letter and discussed its views about the company. Headquartered in St. Louis, Missouri, Arch Resources, Inc. (NYSE:ARCH) engages in the business of coal mining and processing and has a market capitalization of $2.871 billion. The stock of Arch Resources, Inc. (NYSE:ARCH) closed at $154.76 on August 16, 2022. One-month return of Arch Resources, Inc. (NYSE:ARCH) rose to 6.19%, while its shares gained 127.49% of their value over the last 52 weeks.
Here’s what Kingdom Capital Advisor specifically said about Arch Resources, Inc. (NYSE:ARCH) in its Q2 2022 investor letter:
“Arch Resources, Inc. (NYSE:ARCH): When we began following Arch, we focused on their metallurgical coal segment and viewed their thermal coal segment as a source of potential upside. However, especially since Russia’s invasion of Ukraine, energy security has surged into focus and Arch’s thermal operation now faces higher spot prices than their met sales. Arch retired most of their convertible debt during Q2, another example of their strong commitment to delivering shareholder value. Estimates for Q2 suggest Arch should earn over $20/share vs a $130 share price, and they remain committed to distributing half of their cash flow via dividends.”
Arch Resources, Inc. (NYSE:ARCH) is not on the list of 30 Most Popular Stocks Among Hedge Funds. Per our database, Arch Resources, Inc. (NYSE:ARCH) was held by 44 hedge fund portfolios at the end of the first quarter, and 45 in the previous quarter.
We discussed Arch Resources, Inc. (NYSE:ARCH) in another article, and shared Nordstern Capital’s views on the company. For more investor letters from hedge funds and other prominent investors, you can check our hedge fund investor letters Q2 2022 page.
Disclosure: None. This article is originally published at Insider Monkey.