Is Hallador Energy Company (HNRG) a Good Investment?

Investment management company Cove Street Capital recently released its “Small Cap Value Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 2.83% compared to 2.74% for the Russell 2000 Index and -0.66% for the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Cove Street Capital Small Cap Value Fund highlighted stocks like Hallador Energy Company (NASDAQ:HNRG) in the first quarter 2023 investor letter. Headquartered in Terre Haute, Indiana, Hallador Energy Company (NASDAQ:HNRG) is a steam coal producer. On April 10, 2023, Hallador Energy Company (NASDAQ:HNRG) stock closed at $9.46 per share. One-month return of Hallador Energy Company (NASDAQ:HNRG) was 24.97%, and its shares gained 134.74% of their value over the last 52 weeks. Hallador Energy Company (NASDAQ:HNRG) has a market capitalization of $312.015 million.

Cove Street Capital Small Cap Value Fund made the following comment about Hallador Energy Company (NASDAQ:HNRG) in its Q1 2023 investor letter:

Hallador Energy Company (NASDAQ:HNRG) was our biggest gainer last year and there is nothing new to report. The company mines Illinois Basin coal and bought an adjacent coal based power plant for nearly nothing. We posit that the alternative energy tail is MUCH longer than presently believed in some circles and these low cost assets will have considerable earnings power in the years to come. In the shorter run, there is exposure to natural gas pricing which was soft in Q1.”

Hallador Energy Company (NASDAQ:HNRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Hallador Energy Company (NASDAQ:HNRG) at the end of the fourth quarter which was 8 in the previous quarter.

We discussed Hallador Energy Company (NASDAQ:HNRG) in another article and shared the list of best coal mining stocks to buy on 18 March. In addition, please check out our hedge fund investor letters Q1 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.