Lodge Hill Ditches Freeport-McMoRan: A Copper Comedy of Errors

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What happens when you mix a hedge fund manager, a 13F filing, and the electrification megatrend? You get something that feels like an episode of *The Office* but with more spreadsheets and slightly less Jim Halpert pranks.

Lodge Hill Capital, LLC, recently filed their Form 13F-cue dramatic music-and it turns out they’ve dumped all their shares in Freeport-McMoRan (FCX). That’s right, folks, they sold off 587,820 shares during Q2 2025, cashing out at an estimated $22.25 million based on the quarterly average price. It’s like they saw the copper market as a Tinder date: fun for a while, but ultimately not worth the long-term commitment.

But Wait, There’s More!

So what did Lodge Hill do with all that freed-up cash? They doubled down on other investments, because apparently, they’re fans of the “don’t put all your eggs in one basket” philosophy-or maybe they just got spooked by the idea of tariffs ruining their copper dreams. Here’s what their top holdings looked like as of June 30, 2025:

  1. Mr. Cooper Group: $44.71 million (10.3% of AUM)
  2. Mohawk Industries: $41.67 million (9.6% of AUM)
  3. Apollo Global Management: $40.14 million (9.2% of AUM)
  4. Carlisle: $36.42 million (8.4% of AUM)
  5. Builders FirstSource: $33.61 million (7.7% of AUM)

Meanwhile, Freeport-McMoRan’s stock is currently trading at $42.28, which is about as exciting as finding out your favorite coffee shop raised prices again. Over the past year, the stock has underperformed the S&P 500 by nearly 20 percentage points. Oof. But hey, at least there’s a dividend yield of 1.42%, so you can cry over your losses while earning enough to buy yourself a consolation latte.

Meet Freeport-McMoRan: The Mining Multitasker

Metric Value
Market Capitalization $60.70 billion
Revenue (TTM) $25.82 billion
Net Income (TTM) $1.92 billion
Dividend Yield 1.42%

Here’s the thing about Freeport-McMoRan: they’re kind of like the Beyoncé of mining companies. They produce copper, gold, molybdenum, silver-you name it. Their operations span North America, South America, and Indonesia, and they’re basically keeping the global supply chain alive for industries like construction, electronics, and energy. Without them, we’d probably still be living in caves, using tin cans to make phone calls.

  • They own massive assets, including the Grasberg minerals district in Indonesia, which sounds like the setting for a James Bond movie.
  • They generate revenue by extracting and selling metals, which is fancy corporate speak for “digging holes and hoping for treasure.”
  • Their customers include manufacturers who need these materials to build everything from electric cars to skyscrapers.

The Foolish Take: Coppergate?

Now, let’s talk about why this whole situation feels like a workplace sitcom. Lodge Hill’s decision to dump Freeport-McMoRan seems oddly timed, given that the Trump administration decided not to slap tariffs on refined copper. Talk about awkward timing! Imagine pitching this move in a boardroom meeting:

“So, uh, we thought it would be a good idea to sell all our copper stocks before the government made its decision…which then went exactly how we didn’t expect.”

To add insult to injury, Freeport-McMoRan produces over 70% of America’s refined copper. So yeah, they were primed to benefit big time if those tariffs had gone through. Instead, COMEX copper prices tanked, wiping out the premium U.S.-traded copper once enjoyed over international markets. It’s almost poetic, really-a financial Shakespearean tragedy where everyone loses except the London Metal Exchange.

But here’s the twist: despite the drama, Freeport-McMoRan remains undervalued. If you believe in the electrification-of-everything trend (and honestly, who doesn’t?), this could still be a golden opportunity. Or should I say, a copper-colored one?

Oh, and here’s the kicker: Lodge Hill only bought into Freeport-McMoRan back in Q4 2024. Clearly, someone was betting on policy changes paying off-but spoiler alert, it didn’t work out quite as planned. It’s like showing up to a party wearing a tuxedo, only to realize it’s casual Friday.

Glossary: Decoding the Jargon

13F: A report filed quarterly by institutional investors, essentially their way of saying, “Hey SEC, look what we bought!”
Assets Under Management (AUM): The total value of investments managed by a fund, aka how much money they’re playing with.
Quarterly average price: The mean price of a stock over three months, because math is hard.
Dividend yield: How much cash you get back annually compared to the stock price, expressed as a percentage.
Forward P/E: A crystal ball metric for valuing stocks based on future earnings.
EV/EBITDA: A complicated formula that boils down to “how expensive is this company?”
CAGR: Compound annual growth rate, or the speedometer for your investment’s growth.
Stake: Ownership in a company, like owning a piece of cake without having to bake it.
Complete exit: Selling all your shares, aka ghosting a stock.
Base metals: Industrial metals like copper and nickel, the unsung heroes of modern life.
Precious metals: Gold, silver, and other shiny things people hoard during apocalypses.
TTM: Trailing twelve months, or the financial equivalent of “what have you done for me lately?”

And there you have it-a tale of copper, capitalism, and questionable timing. Remember, investing is a lot like dating: sometimes you think you’ve found “the one,” only to realize they weren’t worth the effort. 🤷‍♀️

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2025-08-22 12:05