Tourlite Capital Management, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter is available to download here. In Q4, Tourlite Fund, LP returned 0.2% compared to 2.7% for the S&P 500 Index and 2.2% for the Russell 2000. The Fund posted 2.8% for the full year 2025, substantially below the 17.9% and 12.8% returns of the indexes. In 2025, the fund underperformed below the target return range, primarily due to poor stock selection in the long book, which focuses on event-driven investments. While the short book added 0.9% to performance, the S&P 500 and Russell 2000 gained 18% and 13%, respectively. Despite disappointing results, the fundamental views of many key positions in the portfolio are believed to be intact, as some of them are showing positive early signs in 2026. Heading into 2026, the firm is expecting a positive environment for riskier assets and stocks due to the combination of robust economic growth and falling inflation. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Tourlite Capital Management highlighted FTAI Infrastructure Inc. (NASDAQ:FIP). FTAI Infrastructure Inc. (NASDAQ:FIP) is an American infrastructure company that engages in acquiring, developing, and operating assets and businesses across North America. On March 23, 2026, FTAI Infrastructure Inc. (NASDAQ:FIP) stock closed at $5.08 per share. One-month return of FTAI Infrastructure Inc. (NASDAQ:FIP) was -19.49%, and its shares gained 2.21% over the past 52 weeks. FTAI Infrastructure Inc. (NASDAQ:FIP) has a market capitalization of $600.27 million.
Tourlite Capital Management stated the following regarding FTAI Infrastructure Inc. (NASDAQ:FIP) in its fourth quarter 2025 investor letter:
“Looking ahead to 2026, we expect FTAI Infrastructure Inc. (NASDAQ:FIP) to take strategic action with Long Ridge, refinance its bridge loan from the Wheeling acquisition, and potentially divest Repauno as the company continues its transition toward a pure-play rail business. As these catalysts unfold, we believe FIP could be worth more than $15 per share over the next year.
To recap 2025: in August, FIP announced a transformative deal to acquire Wheeling & Lake Erie Railway and refinance its holding company debt. The market initially reacted negatively, focused on high headline leverage and the issuance of preferred equity warrants tied to the new combined RailCo. We believe this reaction misses the longer-term picture as many of FIP’s infrastructure assets are still ramping toward full earnings potential or remain under development, inflating current leverage metrics.
The value proposition rests on several key assets. Management has guided to $200 million of normalized EBITDA for the new Transtar RailCo; at a conservative 12x multiple for short-line rail, this alone implies more than $10 per share. Repauno secured new cavern permits for Phase 3 in October, with Phases 1 and 2 expected to generate roughly $90 million of EBITDA and Phase 3 potentially adding another $100 million within two years, at a 10x multiple, this could be worth $12 or more per share. Long Ridge, generating $165 million of EBITDA at a 10x multiple, contributes approximately $6 per share, with additional upside of a similar magnitude if a data center agreement is executed.”
FTAI Infrastructure Inc. (NASDAQ:FIP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 20 hedge fund portfolios held FTAI Infrastructure Inc. (NASDAQ:FIP) at the end of the fourth quarter, the same as in the previous quarter. While we acknowledge the risk and potential of FTAI Infrastructure Inc. (NASDAQ:FIP) 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 FTAI Infrastructure Inc. (NASDAQ:FIP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered FTAI Infrastructure Inc. (NASDAQ:FIP) and shared Diamond Hill Capital Small Cap Strategy’s views 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.
