Long Cast Advisers, an investment management firm, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q4 2025, the Portfolio’s cumulative net return increased by 1%, but the cumulative portfolio for the year remained flat. Since its inception in November 2015, the portfolio has delivered a cumulative return of 271% net of fees, outperforming major indices such as the Russell 2000 Index, the iShares US MicroCap ETF, and the iShares SmallCap EAFE (ex-N. Am) ETF for small-cap equities. By year-end, the 28 SMA accounts managed by Long Cast had an AUM of $12M. The firm, with its long-term focus on small companies, has seen returns that varied relative to the broader market, as reflected in its 10-year performance history. Please review the Portfolio’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Long Cast Advisers highlighted stocks like Matrix Service Company (NASDAQ:MTRX). Matrix Service Company (NASDAQ:MTRX) is a specialty engineering and construction company that support critical energy infrastructure and industrial markets. On March 12, 2026, Matrix Service Company (NASDAQ:MTRX) stock closed at $10.32 per share. One-month return of Matrix Service Company (NASDAQ:MTRX) was -9.95%, and its shares lost 18.55% over the past 52 weeks. Matrix Service Company (NASDAQ:MTRX) has a market capitalization of $290.285 million.
Long Cast Advisers stated the following regarding Matrix Service Company (NASDAQ:MTRX) in its fourth quarter 2025 investor letter:
“Matrix Service Company (NASDAQ:MTRX) ($7.34 avg price). The bear case against MTRX, one of our largest positions, is that despite its historically high backlog, it can’t build profitably. And in fact, recent financial results support this view. As discussed in prior letters, one would have to go back to pre-COVID times to understand the earnings power in the business. I believe we are near the inflection where this should become clear. As I wrote in the 3Q25 letter, if they can show profitability, which should come as soon as next quarter, I believe doubters will have to reconsider their thinking and “re-rate” the multiple, now less than 8x a “bad scenario” $20M in EBITDA (as a reminder, there’s $16M of EBITDA just from adding back D&A plus stock based comp). Furthermore, while acknowledging so much uncertainty in our foreign affairs, if the Gulf Coast refineries resume processing heavy Venezuelan crude (as they’re optimized for), it could have secondary and tertiary benefits to MTRX.”
Matrix Service Company (NASDAQ:MTRX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 27 hedge fund portfolios held Matrix Service Company (NASDAQ:MTRX) at the end of the fourth quarter, up from 23 in the previous quarter. In the second quarter of fiscal 2026, Matrix Service Company (NASDAQ:MTRX) reported revenue of $210.5 million, which is a 12% increase from the same period of fiscal 2025. While we acknowledge the risk and potential of Matrix Service Company (NASDAQ:MTRX) 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 Matrix Service Company (NASDAQ:MTRX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Matrix Service Company (NASDAQ:MTRX) and shared Long Cast Advisers’ insights on the company in the previous quarter. 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.
