Signia Capital Management, a boutique money management firm, focuses on Small-Micro-Cap and Small Cap Value investing, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Small-Micro Cap Values approach targets high-quality, catalyst-rich firms with expected earnings growth in the next 12-24 months. The Strategy returned 39.28% (gross) and 35.04% (net) for the full year 2025, compared to the Russell Microcap Value’s 23.83% return and the Russell 2000 Value’s 12.59% return. Since inception, the Strategy has delivered 29.42% (net) annualized vs. 16.15% and14.54% returns for the two indexes, respectively. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Signia Capital Management highlighted stocks like Ramaco Resources, Inc. (NASDAQ:METC). Ramaco Resources, Inc. (NASDAQ:METC) is a metallurgical coal producer based in Lexington, Kentucky. On February 10, 2026, Ramaco Resources, Inc. (NASDAQ:METC) stock closed at $16.69 per share. One-month return of Ramaco Resources, Inc. (NASDAQ:METC) was -25.06%, and its shares are up 74.95% over the past twelve months. Ramaco Resources, Inc. (NASDAQ:METC) has a market capitalization of $1.104 billion.
Signia Capital Management stated the following regarding Ramaco Resources, Inc. (NASDAQ:METC) in its fourth quarter 2025 investor letter:
“As discussed inour2025mid-yearupdate, tariff-related policy uncertainty drove a sharp and wide-spread market sell off during the month of April. We used this volatility to our advantage and increased our position in a number of portfolio companies, including Ramaco Resources, Inc. (NASDAQ:METC).
METC is a U.S.-based producer of metallurgical coal, which is primarily used in the production of steel. We liked METC’s low cost position vs competitors, as well as it growing production profile, growing from 4 m tons per year to upwards of 7mtons by 2028. Additionally, over the last 18months, METC management has discussed and disclosed the potential for a significant rare earth project at the company’s Brook Mine located in Wyoming. Having owned the company off & on for the last3years and observing the development and investment in the BrookMine, we believed this represented a hidden asset with the substantial value creation potential. To assess the property’s value, METC engaged Fluor Corporation to do a Preliminary Economic Assessment(PEA)on1/3oftheproject. We believed the market was assigning little to no value to the BrookMine and that the PEA could be a catalyst for the stock. In July of 2025,METC released the PEA study which indicated the property had a pre tax NPV of approximately$1.2b. With METC’s total enterprise value at roughly $750m, it was evident that the market was mispricing this asset. The PEA study coupled with an administration focused on incentivizing rare earth element production within the US led investors to recognize METC’s significant embedded value. From July through September METC moved from roughly $10 per share to $50. Given our valuation and catalyst discipline, we were trimming/selling into the strength and ultimately exited the position in Q3.”
Ramaco Resources, Inc. (NASDAQ:METC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 31 hedge fund portfolios held Ramaco Resources, Inc. (NASDAQ:METC) at the end of the third quarter, up from 14 in the previous quarter.While we acknowledge the risk and potential of RAMACO RESOURCES, INC. (NASDAQ:METC) 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 RAMACO RESOURCES, INC. (NASDAQ:METC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Ramaco Resources, Inc. (NASDAQ:METC) and shared a list of best high-upside materials stocks to buy. 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.
