Black Bear Value Partners, an investment advisory firm, issued its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Black Bear Value Fund lost -3.6% in March, bringing the year-to-date return to +1.5%. Meanwhile, the S&P 500 dropped- 1.0% in June and has a YTD return of +10.2%. The HFRI Index returned +0.5% in June and +7.1% YTD. The fund is optimistic about its long-term prospects despite the current performance-value gap. It maintains a defensive stance, investing in quality businesses at reasonable prices. Its short book targets businesses with weak fundamentals. Portfolio businesses are transitioning into cash-generative phases, generating substantial free cash flow, paying dividends, repurchasing shares, and enhancing their competitive edge. Please review the top five holdings to understand their key strategies for 2026.
In its Q2 2026 investor letter, Black Bear Value Fund highlighted Warrior Met Coal, Inc. (NYSE:HCC). Warrior Met Coal, Inc. (NYSE:HCC) is a non-thermal metallurgical coal producer. On July 9, 2026, Warrior Met Coal, Inc. (NYSE:HCC) stock closed at $79.07 per share. One-month return of Warrior Met Coal, Inc. (NYSE:HCC) was -12.59%, and its shares gained 61.50% over the past 52 weeks. Warrior Met Coal, Inc. (NYSE:HCC) has a market capitalization of $4.17 billion.
Black Bear Value Fund the following regarding Warrior Met Coal, Inc. (NYSE:HCC) in its Q2 2026 investor update:
“Warrior Met Coal, Inc. (NYSE:HCC) declined approximately 13% during the second quarter and is down roughly 8% year-to-date. Warrior Met Coal is a leading producer of premium metallurgical coal, which is used in steel production. Years of limited global investment in new metallurgical coal capacity have constrained future supply, which should provide a favorable backdrop when steel demand improves. Importantly, our investment thesis does not depend on a significant recovery in coal prices.
The company recently completed its Blue Creek development project, which had consumed the majority of its free cash flow over the past several years. With construction now largely complete, Blue Creek positions Warrior as one of the lowest-cost producers in the industry while allowing substantially more cash flow to accrue to shareholders….” (Click here to read the full text)
Warrior Met Coal, Inc. (NYSE:HCC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 40 hedge fund portfolios held Warrior Met Coal, Inc. (NYSE:HCC) at the end of the first quarter, up from 37 in the previous quarter. While we acknowledge the risk and potential of Warrior Met Coal, Inc. (NYSE:HCC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Warrior Met Coal, Inc. (NYSE:HCC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Warrior Met Coal, Inc. (NYSE:HCC) and shared the list of best coal stocks to invest in according to hedge funds. In addition, please check out our hedge fund investor letters Q2 2026 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
