Here’s Black Bear Value Fund’s Update on Warrior Met Coal (HCC)

Black Bear Value Partners, an investment management firm, published its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Black Bear Value Fund returned +0.8% in March and -1.3% YTD and the S&P 500 returned -5.7% in March and -4.3% YTD. HFRI Value Index returned -2.0% in March and -0.5% YTD. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first quarter 2025 investor letter, Black Bear Value Fund emphasized stocks such as Warrior Met Coal, Inc. (NYSE:HCC). Warrior Met Coal, Inc. (NYSE:HCC) produces and exports non-thermal metallurgical coal for the steel industry. The one-month return of Warrior Met Coal, Inc. (NYSE:HCC) was -11.13%, and its shares lost 27.58% of their value over the last 52 weeks.  On April 8, 2025, Warrior Met Coal, Inc. (NYSE:HCC) stock closed at $43.44 per share with a market capitalization of $2.28 billion.

Black Bear Value Fund stated the following regarding Warrior Met Coal, Inc. (NYSE:HCC) in its Q1 2025 investor letter:

“Please reference the met coal discussion above, as it applies to Warrior Met Coal, Inc. (NYSE:HCC). Currently the bulk of HCC’s FCF is being invested in a capital project that will be concluding this year. Once the business winds down their investment period they will gush cash. I will disclose my updated valuation at a later date.

I am travelling to Alabama next week to meet with management and should learn a lot more about their prospects. This is one of the most compelling ideas in our portfolio. As a reminder this is a Company with a fortress balance sheet and is one of the cheapest producers in the market. While short-term pain hurts all Companies, they can be major long-term beneficiaries.”

Warrior Met Coal, Inc. (NYSE:HCC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Warrior Met Coal, Inc. (NYSE:HCC) at the end of the fourth quarter compared to 34 in the third quarter. While we acknowledge the potential of Warrior Met Coal, Inc. (NYSE:HCC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We covered Warrior Met Coal, Inc. (NYSE:HCC) in another article, where we shared Black Bear Value Partners’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.