Billionaire investor Ken Griffin has a big bet this year on a company that surpasses far better expectations.
Griffin’s hedge fund Citadel has acquired 3,824,329 stakes in NIOCORP Developments Ltd (NB), a company that promotes key mineral development in the United States, according to a filing with the US Securities and Exchange Commission (SEC).
The flagship project of Nebraska’s Niocorp aims to produce rare earth minerals such as niobium, scandium and titanium.
Citadel’s NB holdings account for 5.4% of the total portfolio and 5.2% of the total outstanding shares.
NB is trading at $3.16, with a market capitalization of just $229 million, after opening the year at $1.41 in January, with a profit of 124% so far.
Citadel’s positioning at the company appears to underscore its focus on the energy sector, given its recent victory in the acquisition of Chevron’s $53 billion competitor Hess Corporation.
Citadel Advisors, Adage Capital, and HBK Investments were part of a group of investors betting on acquisitions as part of a merger arbitration strategy that involves betting on the outcome of a merger or acquisition.
Citadel and HBK each represent $1 billion in equity shares, according to Bloomberg.
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