What happened
Lodge Hill Capital, LLC, disclosed in a Form 13F filed August 13, 2025, that it sold its entire stake in Freeport-McMoRan (FCX) during the second quarter. The transaction involved 587,820 shares, with an estimated trade value of approximately $22.25 million for Q2 2025, based on the quarterly average price.
The sale marks a complete exit from holding a position in Freeport-McMoran.
What else to know
Top holdings after the filing, as of June 30, 2025:
- Mr. Cooper Group: $44.71 million (10.3% of AUM)
- Mohawk Industries: $41.67 million (9.6% of AUM)
- Apollo Global Management: $40.14 million (9.2% of AUM)
- Carlisle: $36.42 million (8.4% of AUM)
- Builders FirstSource: $33.61 million (7.7% of AUM)
As of August 14, 2025, Freeport-McMoRan shares were trading at $42.28, down nearly 3% in the last 12 months, underperforming the S&P 500 by 19.7 percentage points.
The stock's dividend yield stood at 1.42%, forward P/E (FY2026) at 15.97 and EV/EBITDA (TTM) at 8.6. Five-year revenue CAGR is 11.86%.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $60.70 billion |
| Revenue (TTM) | $25.82 billion |
| Net Income (TTM) | $1.92 billion |
| Dividend Yield | 1.42% |
Company Snapshot
- Freeport-McMoRan produces copper, gold, molybdenum, silver, and other metals, with mining operations in North America, South America, and Indonesia.
- Generates revenue primarily through the extraction and sale of base and precious metals, leveraging large-scale mining assets and long-term resource development.
- Serves a global customer base, including manufacturers in construction, electronics, transportation, and energy sectors.
Freeport-McMoRan Inc. is a leading global mining company with significant operations focused on copper and gold production. The company owns major mining assets, including the Grasberg minerals district in Indonesia and significant mines in the Americas. It has a diversified resource base and significant operations in North America, South America, and Indonesia.
Foolish take
Lodge Hill Capital's decision to offload all its stock in copper miner Freeport-McMoRan is significant as the position probably represented a bit more than 5% of its assets under management.
It's an interesting move and a change of perspective from the hedge fund management company. It's also a decision that preceded the Trump administration's decision, made in late July, not to include refined copper in a list of copper-related goods to be tariffed. As of writing, there is a 50% tariff in place on imported semi-finished and copper-intensive products, such as wiring, fittings, and pipes.
The decision hurt Freeport-McMoRan's stock price as the company produces over 70% of the refined copper made in the U.S. and is ideally placed to benefit. It also hit the US price of copper, traded on the Commodity Exchange (COMEX), and eliminated the 28% premium that COMEX copper traded at above the international price of copper traded on the London Metal Exchange (LME).
While the news is disappointing, Freeport-McMoRan remains an excellently valued stock, offering a great way to play long-term demand for copper as part of the electrification of everything megatrend.
Digging into the SEC filings, it appears Lodge Hill bought 250,000 shares in Freeport-McMoRan in the fourth quarter of 2024, so it may have been a position taken as part of a trade on a policy change in the new administration. Unfortunately, it doesn't look like it worked out quite as some investors would have hoped.
Glossary
13F: A quarterly report filed by institutional investment managers disclosing their equity holdings to the SEC.
Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.
Quarterly average price: The average price of a security over a specific three-month period.
Dividend yield: Annual dividends paid by a company divided by its share price, expressed as a percentage.
Forward P/E: Price-to-earnings ratio calculated using forecasted earnings for a future period, usually the next fiscal year.
EV/EBITDA: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; a valuation metric.
CAGR: Compound annual growth rate; the average annual growth rate of an investment over a specified period.
Stake: The ownership interest or position held in a company or asset by an investor or fund.
Complete exit: When an investor sells all of its holdings in a particular security, leaving a zero position.
Base metals: Common industrial metals such as copper, nickel, and zinc, as opposed to precious metals like gold and silver.
Precious metals: Rare, naturally occurring metals with high economic value, such as gold and silver.
TTM: The 12-month period ending with the most recent quarterly report.
