Crossroads Capital LLC, an investment management firm, released its Q4 2025 investor letter. A copy of the letter can be downloaded here. The fund increased 2.7% net of fees and expenses in the fourth quarter of 2025, bringing its annual return to 37.7% net. Since its creation, the Fund obtained a compound rate of 21.2% gross and 17.1% net. As of end-December 2025, the Fund’s overall delta-adjusted gross and net exposure was recorded at 89.7% and 72.1%, respectively. After a strong third quarter, November revealed how quickly market sentiment can change due to concerns about the AI bubble, Federal Reserve uncertainty, and increasingly bearish positioning. The fourth quarter revealed the increasingly volatile nature of the market while demonstrating reflexivity rather than avoiding it. The company remains cautiously optimistic that the positive trend in market breadth and growing interest in small-cap stocks will continue through 2026, providing a much-needed boost that Crossroads has long anticipated. Also, check out the Fund’s top five holdings to learn your best picks in 2025.
In its Q4 2025 investor letter, Crossroads Capital highlighted stocks like Calumet, Inc. (NASDAQ:CLMT). Calumet, Inc. (NASDAQ:CLMT) is a manufacturer of specialty products and renewable fuels for various industrial and consumer markets. On February 27, 2026, shares of Calumet, Inc. (NASDAQ:CLMT) closed at $26.96 per share. Calumet, Inc. (NASDAQ:CLMT)’s monthly performance was 18.61% and its stock gained 100.30% in the past 52 weeks. Calumet, Inc. (NASDAQ:CLMT) has a market capitalization of $2.34 billion.
Crossroads Capital stated the following regarding Calumet, Inc. (NASDAQ:CLMT) in its Q4 2025 investor letter:
“Our only significant detractor was Calumet, Inc. (NASDAQ:CLMT), which we sold following the company’s disastrous DOE loan announcement and an unnecessary and, frankly, baffling ATM offering that destroyed our confidence in management. A constructive macroeconomic environment provided some breathing room as the year ended, but we lost faith in the team’s ability to manage capital going forward.”
Calumet, Inc. (NASDAQ:CLMT) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 17 hedge fund portfolios owned Calumet, Inc. (NASDAQ:CLMT) at the end of the fourth quarter, compared to 18 in the previous quarter. While we recognize the potential of Calumet, Inc. (NASDAQ:CLMT) 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’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.