September 30, 2022

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8 Stocks to Sell Now According to Mitch Cantor’s Mountain Lake Investment Management

In this article, we discuss 8 stocks to sell now according to Mitch Cantor’s Mountain Lake Investment Management. If you want to skip our detailed analysis of Cantor’s history, investment philosophy, and hedge fund performance, go directly to 4 Stocks to Sell Now According to Mitch Cantor’s Mountain Lake Investment Management.

California-based hedge fund Mountain Lake Investment Management was founded in 2001 by Mitchell E. Cantor. Mr. Cantor holds a bachelor’s degree from Brown University and an MBA from the University of Pennsylvania’s Wharton School and previously served as a research analyst at Sanford C. Bernstein & Co. and as a portfolio manager and co-chief investment officer at Goldman Sachs Asset Management (GSAM). He founded and managed the five-star value-style Growth & Income Fund at GSAM. He later became the Chief Executive Officer of Weiss, Peck & Greer, a $13 billion money management business.

Mountain Lake’s Q4 portfolio investments are concentrated in the consumer staples, energy, finance, information technology, materials, real estate, utilities and communications and transport sectors. The hedge fund had a total of $209.27 million in managed 13F securities at the end of the fourth quarter of 2021. The hedge fund’s top 10 stocks comprise 77.66% of its total 13F holdings. In Q4 2021, Mountain Lake Investment Management purchased 3 new stocks, made an additional purchase in 7 stocks, reduced its holdings in 11 equities, and sold out of 8 securities. Some of the stocks that Mitch Cantor is bearish on include Cameco Corporation (NYSE:CCJ), Barrick Gold Corporation (NYSE:GOLD), and Newmont Corporation (NYSE:NEM).

In the third quarter of 2021, Mountain Lake Investment Management held 65,000 shares in Cameco Corporation (NYSE:CCJ), valued at $1.41 million, which the hedge fund sold in the fourth quarter of 2021. On April 13, Scotiabank analyst Orest Wowkodaw maintained an ‘Outperform’ rating on Cameco Corporation (NYSE:CCJ), raising his price objective on it to CAD47 ($37.23) from CAD40 ($31.68).

8 Stocks to Sell Now According to Mitch Cantor’s Mountain Lake Investment Management

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In the fourth quarter, Mountain Lake Investment Management sold 20,000 shares of Barrick Gold Corporation (NYSE:GOLD), reducing its previous stake by about 7%. Barrick Gold Corporation (NYSE:GOLD) shares have gained about 13.36% over the last 12 months as of April 16.

On March 9, Jefferies analyst Christopher LaFemina boosted his price target on Newmont Corporation (NYSE:NEM) to $72 from $67 and reiterated a ‘Hold’ rating on the shares. However, in the fourth quarter, Mitch Cantor reduced his stake in Newmont Corporation (NYSE:NEM) by 13%, with his stake in the company being worth about $6.22 million as of December 31.

Our Methodology

With this context in mind, here is our list of the 8 stocks to sell now according to Mitch Cantor’s Mountain Lake Investment. We picked these stocks based on the Q4 SEC filing made by Cantor’s hedge fund, which revealed the fund’s latest positions. In the fourth quarter, the fund sold all of its holdings in the following firms. Insider Monkey’s database of 924 hedge funds that filed 13Fs for the fourth quarter of 2021 provide all of the hedge fund data.

Stocks to Sell Now According to Mitch Cantor’s Mountain Lake Investment

8. Vista Outdoor Inc. (NYSE:VSTO)

Number of Hedge Fund Holders: 25

Percentage Decrease in Stake in Q4: 100%

Vista Outdoor Inc. (NYSE:VSTO) is a consumer goods company that designs, manufactures, and markets outdoor sports and entertainment equipment. Mitch Cantor’s Mountain Lake Investment held 121,000 shares in Vista Outdoor Inc. (NYSE:VSTO) in the third quarter, valued at $4.88 million, which the hedge fund sold in the fourth quarter.

On February 4, Roth Capital analyst Matt Koranda maintained a ‘Buy’ rating on Vista Outdoor Inc. (NYSE:VSTO) while reducing his price objective on the company’s shares to $57 from $61. Despite signals that a peak is approaching, the analyst’s thesis remains unaltered as he expects Vista Outdoor Inc. (NYSE:VSTO) to profit from a continuing ammo up-cycle over the following three quarters.

Vista Outdoor Inc. (NYSE:VSTO) is also attracting the attention of other prominent hedge fund managers. At the end of the fourth quarter of 2021, 25 hedge funds tracked by the database of Insider Monkey held stakes worth $460.48 million in Vista Outdoor Inc. (NYSE:VSTO), up from 23 funds owning stakes worth $407.07 million a quarter earlier.

Just like Cameco Corporation (NYSE:CCJ), Barrick Gold Corporation (NYSE:GOLD), and Newmont Corporation (NYSE:NEM), Vista Outdoor Inc. (NYSE:VSTO) is one of the stocks to sell now according to Mitch Cantor’s Mountain Lake Investment.

ClearBridge Investments, in its Q2 2021 investor letter, highlighted a few stocks, and Vista Outdoor Inc. (NYSE:VSTO) was one of them. Here is what the fund said:

“Our Strategy outperformed with strong results from consumer discretionary stocks like Vista Outdoor Inc. (NYSE:VSTO). Vista Outdoor Inc. (NYSE:VSTO), a manufacturer of a wide range of products serving the outdoor sports and recreation markets, also performed well in the period on continued demand and growing margins.”

7. Sandstorm Gold Ltd. (NYSE:SAND)

Number of Hedge Fund Holders: 14

Percentage Decrease in Stake in Q4: 100%

Sandstorm Gold Ltd. (NYSE:SAND) is a company that buys gold and other metals purchase agreements and royalties. Sandstorm Gold Ltd. (NYSE:SAND) has 230 streams and royalties in its portfolio. Sandstorm Gold Ltd. (NYSE:SAND)’s price objective was lifted to CAD11.50 ($9.11) from CAD11 ($8.71) on February 22 by TD Securities analyst Derick Ma, who kept a ‘Buy’ rating on the stock.

On April 1, Sandstorm Gold Ltd. (NYSE:SAND) declared a quarterly dividend of CAD0.02 per share, in line with the previous. Sandstorm Gold Ltd. (NYSE:SAND) said on April 4 that it had sold 18,700 attributable gold equiv. oz. in the first quarter of 2022, generating $35.3 million in early sales.

Mitch Cantor cut his stake in Sandstorm Gold Ltd. (NYSE:SAND) by 32% in the third quarter. He first invested in Sandstorm Gold Ltd. (NYSE:SAND) in the first quarter of 2021. However, Mitch Cantor’s Mountain Lake Investment sold off its entire stake in the company during the fourth quarter of 2021.

14 hedge funds had stakes in Sandstorm Gold Ltd. (NYSE:SAND) at the end of the fourth quarter of 2021, down from 15 at the end of Q3. Those stakes were valued at $106.27 million on December 31.

6. Osisko Gold Royalties Ltd (NYSE:OR)

Number of Hedge Fund Holders: 17

Percentage Decrease in Stake in Q4: 100%

Osisko Gold Royalties Ltd (NYSE:OR) is a precious metal, streams, and other royalties acquisition, mining, and exploration company. A 5% net smelter return royalty on the Canadian Malartic mine is Osisko Gold Royalties Ltd (NYSE:OR)’s most valuable asset. It is also involved in mining project exploration, appraisal, and development.

On April 6, TD Securities analyst Greg Barnes maintained a ‘Buy’ recommendation on Osisko Gold Royalties Ltd (NYSE:OR), raising his price objective on the stock to CAD23 ($18.22) from CAD21 ($16.63). Millennium Management, with approximately 5.86 million OR shares worth $71.84 million, is the largest shareholder of Osisko Gold Royalties Ltd (NYSE:OR) in our database as of Q4.

Osisko Gold Royalties Ltd (NYSE:OR) saw a decrease in hedge fund sentiment during Q4, as the number of long hedge fund positions declined to 17 by the end of the fourth quarter, compared to 19 positions in the previous quarter. Mountain Lake Investment was also bearish on Osisko Gold Royalties Ltd (NYSE:OR), and it was one of the stocks that Mitch Cantor’s Mountain Lake Investment sold off during the fourth quarter of 2021.

5. Martin Marietta Materials, Inc. (NYSE:MLM)

Number of Hedge Fund Holders: 39

Percentage Decrease in Stake in Q4: 100%

Martin Marietta Materials, Inc. (NYSE:MLM) operates a network of quarries and distribution yards where crushed stone, sand, and gravel are produced. DA Davidson’s Brent Thielman cut his price target on Martin Marietta Materials, Inc. (NYSE:MLM) to $450 from $465 on February 14, citing industry and peer multiple contractions, but reaffirmed a ‘Buy’ recommendation.

39 hedge funds in our database held stakes in Martin Marietta Materials, Inc. (NYSE:MLM) at the end of the fourth quarter, compared to 42 funds in the third quarter. Select Equity Group is Martin Marietta Materials, Inc. (NYSE:MLM)’s most significant stakeholder, with 3.51 million shares worth $1.54 billion.

Mountain Lake Investment started building its position in Martin Marietta Materials, Inc. (NYSE:MLM) in the first quarter of 2020, and in the fourth quarter of 2021, the hedge fund sold off its 5,000 shares of the company, which were valued at $1.71 million on September 30.

In addition to Cameco Corporation (NYSE:CCJ), Barrick Gold Corporation (NYSE:GOLD), and Newmont Corporation (NYSE:NEM), Martin Marietta Materials, Inc. (NYSE:MLM) is one of the stocks to sell now according to Mitch Cantor’s Mountain Lake Investment.

In its fourth quarter 2021 investor letter, Weitz Investment Management mentioned Martin Marietta Materials, Inc. (NYSE:MLM). Here is what the fund said:

“Martin Marietta Materials is one of the Fund’s largest quarterly contributors due to solid results and bright outlooks for their prosaic, essential products. Aggregate volumes and backlogs are strong across end markets, pricing momentum is robust, and the federal infrastructure bill adds visibility into the amount of money that will be allocated to infrastructure projects.”

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Disclosure: None. 8 Stocks to Sell Now According to Mitch Cantor’s Mountain Lake Investment Management is originally published on Insider Monkey.