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 Core Natural Resources, Inc. (NYSE:CNR). Core Natural Resources, Inc. (NYSE:CNR) was formed through the merger of Arch Resources and CONSOL Energy in January 2025. Core Natural Resources, Inc. (NYSE:CNR) is a US-based company involved in the production, distribution, and export of metallurgical and thermal coals. On July 9, 2026, Core Natural Resources, Inc. (NYSE:CNR) closed at $80.99 per share, reflecting a market capitalization of $4.08 billion. Core Natural Resources, Inc. (NYSE:CNR) posted a one-month return of -12.21%, while its shares gained 7.04% over the past 52 weeks.
Black Bear Value Fund the following regarding Core Natural Resources, Inc. (NYSE:CNR) in its Q2 2026 investor update:
Core Natural Resources, Inc. (NYSE:CNR) declined approximately 23% during the second quarter and is down roughly 9% year-to-date, including dividends. Core is one of the world’s leading producers of both metallurgical coal, used in steelmaking, and thermal coal, used in power generation.
Thermal coal stands to benefit from growing global electricity demand following more than a decade of limited growth. While headlines often focus on renewable energy, we believe virtually every source of electricity generation will be needed to satisfy rising demand from AI, data centers, and broader electrification. Much of the developing world continues to rely on thermal coal as an essential source of baseload power, while global cement production, which also depends on coal as a key feedstock—is expected to grow meaningfully over the coming decades.
We also remain constructive on metallurgical coal. Demand is expected to increase over the next several decades, driven by industrialization and urbanization across India and Southeast Asia. At the same time, years of ESG-driven underinvestment have constrained new supply, with industry capital spending having peaked more than a decade ago. We believe this combination of growing demand and limited supply should support attractive long-term pricing…” (Click here to read the full text)
Core Natural Resources, Inc. (NYSE:CNR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 55 hedge fund portfolios held Core Natural Resources, Inc. (NYSE:CNR) at the end of the first quarter, up from 50 in the previous quarter. While we acknowledge the risk and potential of Core Natural Resources, Inc. (NYSE:CNR) 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 Core Natural Resources, Inc. (NYSE:CNR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Core Natural Resources, Inc. (NYSE:CNR) and shared Kingdom Capital Advisors’ insights on the company. 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.
