Merion Road Capital Shared its Positive Outlook on Monarch Cement (MCEM)

Merion Road Capital Management, an investment advisor, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, Merion Road Small Cap Fund returned (7.8%) compared to (9.5%) return for the Russell 2000 Index. The decline was due to small-cap companies’ continuous underperformance relative to their larger counterparts. The long-only portfolio of Merion Road declined (8.2%) during the quarter compared to the S&P 500’s (4.3%) return. The decline was primarily attributable to tech-oriented holdings and economically sensitive industrials. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Merion Road Capital Management highlighted stocks such as The Monarch Cement Company (OTC:MCEM). The Monarch Cement Company (OTC:MCEM) manufactures and distributes Portland cement that offers masonry cement, ready-mixed concrete, concrete products, and sundry building materials. The one-month return of The Monarch Cement Company (OTC:MCEM) was 4.68%, and its shares gained 27.67% of their value over the last 52 weeks.  On April 21, 2025, The Monarch Cement Company (OTC:MCEM) stock closed at $233.90 per share with a market capitalization of $878.764 million.

Merion Road Capital Management stated the following regarding The Monarch Cement Company (OTC:MCEM) in its Q1 2025 investor letter:

“The Monarch Cement Company (OTC:MCEM) recently announced another special dividend after having previously paid one out in December. This will bring their total dividends paid to $7.75 over the past 4 quarters (~6% yield). The company recently moved from the Pink Sheets to OTCQX Best Market – hopefully this will enhance liquidity and valuation. Lastly, management provided attractive guidance for continued pricing strength and energy savings from their solar investment.”

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A construction site featuring a large concrete foundation poured by the cement manufacturing company.

The Monarch Cement Company (OTC:MCEM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of The Monarch Cement Company (OTC:MCEM) 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.

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.