Greystone Capital Management, an investment management company, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. During Q2 2026, Greystone Capital’s median account return was +7.2%, trailing behind S&P 500 (+15.2%) and Russell 2000 (+21.5%). Year-to-date returns were +8.6%, compared to +10.2% and +22.5% for the respective indices. The firm’s performance is not tied to indices, as they do not own the index-driving companies. The letter emphasizes that Greystone’s strategy focuses on business fundamentals rather than chasing index-driven gains, particularly avoiding the current AI-driven market boom due to valuation risks. The investment strategy is based on recognizing opportunities amid market neglect rather than popularity, and the firm remains open to AI investments at appropriate valuations. Historically, the firm has outperformed with a cumulative +222.0% return since inception, compared to relevant indices, reflecting a commitment to fundamental business growth over time. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 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 in the United States that operates through its Mineral Rights and Soda Ash segments. On July 31, 2026, Natural Resource Partners L.P. (NYSE:NRP) closed at $98.06 per share, reflecting a market capitalization of $1.3 billion. Natural Resource Partners L.P. (NYSE:NRP) posted a one-month return of 0.19%, while its shares lost 3.63% over the past 52 weeks.
Greystone Capital Management stated the following regarding Natural Resource Partners L.P. (NYSE:NRP) in its Q2 2026 investor update:
“Natural Resource Partners L.P. (NYSE:NRP) is our coal and soda ash royalty business, which I first introduced as a new investment in our Q4 2024 letter. Since then, pricing conditions for NRP’s key commodities have worsened and NRP’s share price has remained flat to slightly down for the past year and a half. The soda ash market is in disarray, and for NRP’s Sisecam Wyoming JV, where they own a 49% stake in what has historically been a strong generator of royalty payments, is now consuming cash to service debt at the corporate level, with NRP having to provide a $39M cash infusion as of the most recent quarter, which gave the appearance of continuing cash needs for the JV. Our work indicates that the cash infusion should be viewed as one time event, and over a much longer period of time, management is aiming for soda ash to become a very large part of the total royalty stream. On the coal front, despite increased global demand, the market remains a bit oversupplied, leading to unfavorable near-term price action.
As a reminder, we are not underwriting significant increases in the price of thermal or met coal, only that the state of the world remains the same, consisting of a severe supply demand imbalance. The world is once again on track to consume record amounts of coal, while production figures have declined nearly -2.0% from this time last year. There will be a time when the world no longer needs thermal coal, and to a lesser extent met coal, but those days are far away, and in the meantime, there are plenty of reasons to be bullish these commodities, with artificial intelligence adding yet another given the datacenter boom and widespread need for low cost and effective baseload power…” (Click here to read the full text)
Natural Resource Partners L.P. (NYSE:NRP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 9 hedge fund portfolios held Natural Resource Partners L.P. (NYSE:NRP) at the end of the first quarter, the same as 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 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.
