Greenlight Capital Exited Its Long-Term Investment in Teck Resources (TECK)

Greenlight Capital, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Greenlight Capital funds returned -3.6% in the quarter, net of fees and expenses, compared to 8.1% for the S&P 500 index. The fund returned 0.4% in YTD compared to 14.8% for the index. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Greenlight Capital highlighted stocks such as Teck Resources Limited (NYSE:TECK). Headquartered in Vancouver, Canada, Teck Resources Limited (NYSE:TECK) engages in the exploration, acquisition, development, production, and sale of natural resources. The one-month return of Teck Resources Limited (NYSE:TECK) was -5.22%, and its shares lost 12.44% of their value over the last 52 weeks. On October 27, 2025, Teck Resources Limited (NYSE:TECK) stock closed at $41.80 per share, with a market capitalization of $20.412 billion.

Greenlight Capital stated the following regarding Teck Resources Limited (NYSE:TECK) in its third quarter 2025 investor letter:

"After just over five years, we exited our investment in Teck Resources Limited (NYSE:TECK) with a large gain. Some of you will remember that we pitched this at the Sohn Investment Conference in 2021, and since then the thesis has mostly played out. The company divested its metallurgical (met) coal business, completed its capital spending program and opened the huge new Quebrada Blanca mine in Chile. Copper prices have strengthened and the company transitioned to returning capital to shareholders.

Nonetheless, there were a series of setbacks along the way. Quebrada Blanca construction took longer than expected, was over budget and has subsequently produced less copper than anticipated. While TECK initially proposed a creative and value enhancing plan to split off the met coal business, that plan was rejected by shareholders, who did not seem to appreciate the opportunity. Ultimately, the met coal business was sold for a mediocre price. Finally, the company recently announced a “merger of equals” with Anglo American plc, which was a bit less than a merger of equals due to Anglo American shareholders being awarded a pre-closing dividend. In any case, we don’t believe TECK did a great job of maximizing value upon exit. As we assess the transaction, we are less enthusiastic about owning the combined company than we were about owning TECK as a standalone company. After the announcement, TECK traded up due to market excitement related to the anticipated deal synergies. While we had trimmed our position opportunistically over the years, we decided to now make a final exit. Over the five-year holding period, partly because the thesis worked and partly because we did a good job trading around the position, we achieved a 52% net IRR on this investment."

Teck Resources Limited (NYSE:TECK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 52 hedge fund portfolios held Teck Resources Limited (NYSE:TECK) at the end of the second quarter, compared to 62 in the previous quarter.  While we acknowledge the potential of Teck Resources Limited (NYSE:TECK) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Teck Resources Limited (NYSE:TECK) and shared the list of best Canadian stocks to buy. In addition, please check out our hedge fund investor letters Q3 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.