Billionaire investor Ken Griffin is making a bold move by investing in a company that has exceeded expectations this year.
According to a filing with the U.S. Securities and Exchange Commission (SEC), Griffin’s hedge fund Citadel has purchased 3,824,329 shares of NioCorp Developments Ltd (NB), a company focused on advancing critical minerals development in the U.S.
NioCorp’s primary project in Nebraska is dedicated to producing rare earth minerals such as niobium, scandium, and titanium.
Citadel’s investment in NB accounts for 5.4% of its overall portfolio and 5.2% of the total outstanding shares.
With a market capitalization of just $229 million, NB’s stock price has risen from $1.41 in January to $3.16, marking a 124% gain for the year.
Citadel’s interest in the company reflects a focus on the energy sector, following its successful involvement in Chevron’s $53 billion acquisition of Hess Corporation.
Citadel Advisors, Adage Capital, and HBK Investments were part of a group of investors leveraging a merger arbitrage strategy in the acquisition, involving long and/or short positions in the stocks of the companies involved.
According to Bloomberg, Citadel and HBK held approximately $1 billion each in shares related to the transaction.
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