Riverwater Micro Opportunities Strategy Added Uranium Royalty Corp. (UROY) to its Portfolio

Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q4 2024 investor letter. A copy of the letter can be downloaded here. Although the Micro Opportunities Strategy had impressive absolute returns in the fourth quarter, it fell short of the benchmark, which resulted in a year-over-year underperformance. The quarterly results were primarily driven by stock selection. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Riverwater Partners Micro Opportunities Strategy highlighted stocks like Uranium Royalty Corp. (NASDAQ:UROY) in the fourth quarter 2024 investor letter. Uranium Royalty Corp. (NASDAQ:UROY) is a pure-play uranium royalty company. One-month return of Uranium Royalty Corp. (NASDAQ:UROY) was 12.21%, and its shares lost 32.49% of their value over the last 52 weeks. On January 21, 2025, Uranium Royalty Corp. (NASDAQ:UROY) stock closed at $2.39 per share with a market capitalization of $319.285 million.

Riverwater Partners Micro Opportunities Strategy stated the following regarding Uranium Royalty Corp. (NASDAQ:UROY) in its Q4 2024 investor letter:

“This quarter, we made several strategic adjustments to the portfolio. We initiated a position in Uranium Royalty Corp. (NASDAQ:UROY), which aligns with our long-standing focus on the nuclear power and uranium theme. UROY provides exposure to uranium prices through a diversified portfolio of royalties, streaming interests, and physical uranium holdings. Its portfolio includes royalty interests in premier North American assets such as Cigar Lake and McArthur River. UROY offers a less risky way to capitalize on the upside in uranium prices compared to Centrus Energy (LEU), which we exited during the quarter.”

A close-up of a uranium mining site, the hardworking miners working underground to extract uranium resources.

Uranium Royalty Corp. (NASDAQ:UROY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Uranium Royalty Corp. (NASDAQ:UROY) at the end of the third quarter which was 8 in the previous quarter. While we acknowledge the potential of Uranium Royalty Corp. (NASDAQ:UROY) 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 Q4 2024 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.