Here's Why New Fortress Energy (NFE) Detracted in Q2

Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy generated a total return of 15.3% net of fees in the quarter compared to the strategy’s unmanaged benchmark, the S&P 500 Index’s 10.9% return. According to a three-factor performance attribution model, the selection effect contributed positively to the portfolio’s performance, which was partially offset by allocation and interaction effects. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Patient Capital Opportunity Equity Strategy highlighted stocks such as New Fortress Energy Inc. (NASDAQ:NFE). New Fortress Energy Inc. (NASDAQ:NFE) is an integrated gas-to-power energy infrastructure company. The one-month return of New Fortress Energy Inc. (NASDAQ:NFE) was 101.79%, and its shares lost 82.42% of their value over the last 52 weeks. On July 17, 2025, New Fortress Energy Inc. (NASDAQ:NFE) stock closed at $4.50 per share with a market capitalization of $1.234 billion.

Patient Capital Opportunity Equity Strategy stated the following regarding New Fortress Energy Inc. (NASDAQ:NFE) in its second quarter 2025 investor letter:

"New Fortress Energy Inc. (NASDAQ:NFE) declined during the quarter following a disappointing first quarter earnings report and growing concerns over its liquidity position. The company, a vertically integrated LNG infrastructure provider with strategic import terminals in developing markets, was initially expected to benefit from increased LNG adoption as a transitional fuel. However, reported volumes in its core terminal business fell well short of management’s expectations, and shifting supply dynamics left the company exposed to commodity price risk. With deteriorating fundamentals, a high debt load and near-term maturities, we chose to exit the position given the risking risk of potential default. Our concerns were further reinforced by the company’s delayed 10-K filing, which included new language expressing “substantial doubt” about its ability to continue as a going concern."

New Fortress Energy Inc. (NASDAQ:NFE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held New Fortress Energy Inc. (NASDAQ:NFE) at the end of the first quarter, which was 34 in the previous quarter. While we acknowledge the potential of NFE 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 New Fortress Energy Inc. (NASDAQ:NFE) and shared the list of best hydrogen and fuel cell stocks to buy according to analysts. 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.