Crossroads Capital LLC, an investment management company released its third quarter 2024 investor letter. A copy of the same can be downloaded here. The Crossroads Capital Investment Partners, LP returned 4.2% net of all fees and expenses, bringing YTD net returns to 8.9%. The fund has compounded at 15.7% and 17.9% net, respectively, since inception, and over the last five years. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Crossroads Capital highlighted stocks like Calumet, Inc. (NASDAQ:CLMT) in the third quarter 2024 investor letter. Calumet, Inc. (NASDAQ:CLMT) manufactures and formulates a diversified slate of specialty branded products and renewable fuels. The one-month return of Calumet, Inc. (NASDAQ:CLMT) was 16.17%, and its shares gained 30.20% of their value over the last 52 weeks. On December 17, 2024, Calumet, Inc. (NASDAQ:CLMT) stock closed at $21.60 per share with a market capitalization of $1.856 billion.
Crossroads Capital stated the following regarding Calumet, Inc. (NASDAQ:CLMT) in its Q3 2024 investor letter:
“Another key development in Q3 concerned our longstanding position in Calumet, Inc. (NASDAQ:CLMT), which underwent its long-awaited C-Corp conversion in early July. Less than a week after the conversion, a sell recommendation from a prominent analyst with a large retail following sent the stock down considerably. Market volatility from the carry trade unwind added insult to injury, sending the stock down 50% in a few weeks’ time. Once again, we were prepared to make the most of it, and that’s exactly what we did. After engaging our on-the-ground intelligence network to confirm that (1) there was no fundamental force majeure event (e.g. one of its refineries blowing up) and (2) the long-awaited DoE loan was still on track, we decided the best course of action was to purchase a large position in call options with a 2025 expiration as a supplement to our position in Calumet’s common equity.”
An aerial view of an offshore oil platform against the backdrop of the open sea.
Calumet, Inc. (NASDAQ:CLMT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Calumet, Inc. (NASDAQ:CLMT) at the end of the third quarter which was 7 in the previous quarter. While we acknowledge the potential of Calumet, Inc. (NASDAQ:CLMT) 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 another article, we discussed Calumet, Inc. (NASDAQ:CLMT) and shared the list of best American energy stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q3 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.