Managerial Changes on Operations Overshadow Quest Resource Holding Corporation’s (QRHC) Cash Flow Gains

Long Cast Advisers, an investment management firm, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund’s cumulative net returns improved 19%. Year-to-date cumulative net returns through quarter-end remain down 4%. The fund returned a cumulative 253% net of fees, or 12% CAGR, since its inception in November 2015 through the quarter-end of Q2 2025. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Long Cast Advisers highlighted stocks such as Quest Resource Holding Corporation (NASDAQ:QRHC). Headquartered in The Colony, Texas, Quest Resource Holding Corporation (NASDAQ:QRHC) provides waste and recycling services. The one-month return of Quest Resource Holding Corporation (NASDAQ:QRHC) was -19.20%, and its shares lost 78.48% of their value over the last 52 weeks. On September 02, 2025, Quest Resource Holding Corporation (NASDAQ:QRHC) stock closed at $1.81 per share, with a market capitalization of $37.49 million.

Long Cast Advisers stated the following regarding Quest Resource Holding Corporation (NASDAQ:QRHC) in its second quarter 2025 investor letter:

“In my July email, I called out two stocks – CCRD and Quest Resource Holding Corporation (NASDAQ:QRHC) – and both have had substantive news worth updating. Also subsequent to the quarter, QRHC reported meaningful cash flow generation for the first time in two years. As I wrote in my July email, I would love to put the proceeds from CCRD into QRHC, a long time position that has more than halved (twice) since September, but I am hesitant until I see the effect of recent managerial changes on operations. Cash flow generation is one of those small but important indicators. We have been selectively adding.

However, I continue to think the Board is missing an opportunity to improve as well. Out of the six remaining Board members, three of them – our Chairman Dan Frieberg, plus Stephen Nolan and Audrey Dunning – have a web of interconnects as investors and Board members in what I call “perpetual microcaps”. The only reason to own microcaps is for the expectation that it grows … beyond … so it’s never a confidence builder to see a Board with such heavy microcap-only experience…” (Click here to read the full text)

Quest Resource Holding Corporation (NASDAQ:QRHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Quest Resource Holding Corporation (NASDAQ:QRHC) at the end of the second quarter, which was 9 in the previous quarter. Quest Resource Holding Corporation (NASDAQ:QRHC) reported revenue of $59.5 million in the second quarter of 2025, marking a decrease of 19% compared to Q2 2024. While we acknowledge the risk and potential Quest Resource Holding Corporation (NASDAQ:QRHC) 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 Quest Resource Holding Corporation (NASDAQ:QRHC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Quest Resource Holding Corporation (NASDAQ:QRHC) and shared Long Cast Advisers’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.