Copper Price Rally Powers Hudbay Minerals (HBM) in Q2

L1 Capital , an investment management firm, released its "L1 Long Short Fund" second-quarter 2026 investor letter. A copy of the letter can be downloaded here . The market's main themes in the June quarter were the Iran conflict and developments in the AI sector. These trends shifted after oil prices declined due to a ceasefire agreement, leading to a reversal. AI stocks surged, driven by strong earnings, rapid capital investment, and critical supply shortages. During this period, the L1 Long Short Fund achieved notable gains, rising 12.7% compared to the ASX200AI's 4.0%, with year-to-date returns at 12.5% versus 2.4%. U.S. equities outperformed, especially those benefiting from AI-related capital expenditure. The firm is satisfied with the portfolio's positioning, emphasizing strong medium-term growth potential, supported by attractive valuations, solid earnings, and robust cash flow. In addition, you can check the Fund's top five holdings to know its best picks in 2026.

In its Q2 2026 investor letter, L1 Long Short Fund highlighted Hudbay Minerals Inc. (NYSE: HBM ). Hudbay Minerals Inc. (NYSE:HBM) is a diversified mining company focused on exploration, development, operation, and optimization of mineral properties. On July 17, 2026, Hudbay Minerals Inc. (NYSE:HBM) closed at $20.36 per share, reflecting a market capitalization of $9.04 billion. Hudbay Minerals Inc. (NYSE:HBM) posted a one-month return of -27.05%, while its shares gained 107.76% over the past 52 weeks.

L1 Long Short Fund stated the following regarding Hudbay Minerals Inc. (NYSE:HBM) in its Q2 2026 investor update:

"Hudbay Minerals Inc. (NYSE:HBM) (Long +15%) shares rose over the quarter alongside a 9.7% rise in the copper price, supported by powerful growth drivers from demand for electrification, AI and defence. Despite stronger prices, copper supply remains constrained, with weak Chilean production, mine disruptions in Indonesia and the DRC, and higher sulfuric acid costs related to the Middle East conflict.

During the quarter, Hudbay completed its all-share acquisition of Arizona Sonoran, where L1 had been a large shareholder. Post the transaction, Hudbay will own one of the largest growing copper districts in North America, a highly strategic asset base. Continued global supply tightness in copper underpins our positive medium-term sector outlook, which we believe the company is well placed to benefit from."

Hudbay Minerals Inc. (NYSE:HBM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . According to our database, 42 hedge fund portfolios held Hudbay Minerals Inc. (NYSE:HBM) at the end of the first quarter, up from 40 in the previous quarter. While we acknowledge the potential of Hudbay Minerals Inc. (NYSE: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 shared the list of high growth stocks to buy. In addition, please check out our hedge fund investor letters Q2 2026 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 .

Sinergia Empresarial continuará el seguimiento de esta información sobre copper Price Rally Powers Hudbay Minerals (HBM) in Q2 y ampliará la cobertura conforme se confirmen nuevos elementos relevantes para el ecosistema empresarial.