L1 Long Short Fund, an investment management firm, released its second-quarter 2025 investor letter. The L1 Long Short Fund (LSF) portfolio generated a return of 12.2% for the June quarter, outperforming the ASX200 Accumulation Index (ASX200AI), which advanced 9.5% over the same period. Over the past five years, the portfolio has delivered a compound annual return of 21.0%, significantly ahead of the ASX200AI’s 11.8% per annum. This consistent outperformance reflects the firm’s disciplined long/short investment approach and ability to navigate dynamic market conditions. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025. A copy of L1 Long Short Fund’s Q2 2025 investor letter is available for download here.

One of the companies mentioned in the letter is

HudBay Minerals Inc.

(NYSE:HBM). HudBay Minerals Inc. (NYSE:HBM) operates as a diversified mining company, focusing on the exploration, development, operation, and optimization of properties in North and South America. Over the past month, HudBay Minerals Inc. (NYSE:HBM) rose by 20.47%, and its shares gained 60.49% of their value over the last 12 months. On September 22, 2025, HudBay Minerals Inc. (NYSE:HBM) shares closed at $14.21, with a market capitalization of $5.617 billion.

Here is what they have to say about HudBay Minerals Inc. (NYSE:HBM) in their investor letter:

"Hudbay Minerals (Long +32%) shares rallied over the quarter driven by rising copper and gold prices (+3.8% and +5.5%, respectively), in addition to strong first quarter results. During Q1 25 Hudbay delivered robust operating performance across both its major assets, exceeding consensus expectations. Most notably, gold production from Manitoba in Canada was higher than expected on strong mill performance and higher than anticipated gold grades. Stronger gold production combined with higher gold prices delivered a ~35% beat to consensus expectations for Q1 25 EBITDA. Hudbay is a mid-tier mining company primarily producing copper, along with gold and zinc, with its key assets located in Canada and Peru.Cipher (CIFR) Mining Surges 22% on Investor Optimism

HudBay Minerals Inc. (NYSE:HBM) is not included in our list of the 30 most popular stocks among hedge funds. According to our data,

Story Continues

40 hedge fund portfolios held positions in HudBay Minerals Inc. (NYSE:HBM) at the end of the second quarter of 2025, up from

34 in the previous quarter. HBM surpassed Q2 2025 earnings expectations, posting an EPS of $0.19 compared to the forecast of $0.11. While we acknowledge the potential of HBM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered HudBay Minerals Inc. (NYSE:HBM) and RBC Capital’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 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.

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