Greystone Capital Management, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the Median Account return for separate accounts managed by the firm was +0.3%, net of fees brining the full year net returns to +2.8%. The Fund has returned a cumulative +197.7% or +21.9% per year, net of fees, since inception in Q4 2019. When compared to the S&P 500 and Russell 2000 returns, the results for the fourth quarter and the full year of 2025 were disappointing, which stood at +2.7% and +2.2%, respectively, for the quarter, and +17.4% and +13.5%, respectively, for 2025. While fourth-quarter and full-year 2025 results lagged behind indices, the firm maintains a long-term approach, not focusing on single quarters or calendar years. The concentrated, differentiated strategy leads to expected divergence from major indices, with tracking error seen as a feature rather than a flaw. The firm cited poor stock selection, strong performers in 2024 facing valuation compression, and a lack of AI-themed investments as reasons for its underperformance in 2025. In addition, you can check the Fund’s top 5 holdings to find out its best picks for 2025.
In its fourth-quarter 2025 investor letter, Greystone Capital Management highlighted Natural Resource Partners L.P. (NYSE:NRP). Natural Resource Partners L.P. (NYSE:NRP) owns, manages, and leases a portfolio of mineral properties. The one-month return of Natural Resource Partners L.P. (NYSE:NRP) was 9.43%, and its shares gained 8.33% of their value over the last 52 weeks. On January 28, 2026, Natural Resource Partners L.P. (NYSE:NRP) stock closed at $114.25 per share, with a market capitalization of $1.501 billion.
Greystone Capital Management stated the following regarding Natural Resource Partners L.P. (NYSE:NRP) in its fourth quarter 2025 investor letter:
“Natural Resource Partners L.P. (NYSE:NRP), our coal royalty business, delivered another strong year in 2025, continuing its evolution into a debt-free, capital-return-focused royalty and infrastructure business. Due to the nature of the royalty business model that avoids ongoing capital expenditures and high operating costs, cash flows remained robust across the mineral rights segment, in what has been a tough environment for both met and thermal coal prices. During 2025, global coal consumption of 8.8 billion tons once again reached record highs, and given the severe supply/demand imbalance globally, I’d imagine pricing conditions begin to change favorably as we approach the end of the decade.
In my view, the most underappreciated attribute of NRP’s business is lack of price risk being taken here. The royalty business model provides exceptional durability, having been stress-tested through various pricing environments and macro environments. Most importantly, the balance sheet continues to strengthen, and leverage metrics now sit comfortably within long-term targets, giving management flexibility to increase shareholder distributions within a few quarters. With a 20-year track record of positive free cash flow and plenty of reserves in the ground, I like our odds to collect distributions from NRP well into the foreseeable future.
As a reminder, we have no way of forecasting the price of coal, and we are not underwriting heroic growth assumptions. NRP is positioned to generate significant free cash flow during the next several years, much of which should be returned to us. We also get to capture the upside of any exuberance in coal prices along with the eventual recovery of soda ash. Shares trade at a substantial discount to my intrinsic value estimate of $200-250/share, making NRP one of the most compelling asymmetries in the portfolio.”
Natural Resource Partners L.P. (NYSE:NRP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 6 hedge fund portfolios held Natural Resource Partners L.P. (NYSE:NRP) at the end of the third quarter, compared to 8 in the previous quarter. While we acknowledge the risk and potential of Natural Resource Partners L.P. (NYSE:NRP) 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 Natural Resource Partners L.P. (NYSE:NRP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Natural Resource Partners L.P. (NYSE:NRP) and shared the list of best coal stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2025 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.
