Accelerated Momentum Boosted Uranium Royalty Corp. (UROY) in Q3

Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. The strategy reported solid absolute returns in the quarter but lagged the benchmark as it did not keep pace with the strong rally. The strategy continues to focus on quality companies in the volatile environment. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Riverwater Partners Micro Opportunities Strategy highlighted stocks such as Uranium Royalty Corp. (NASDAQ:UROY). Uranium Royalty Corp. (NASDAQ:UROY) is a pure-play uranium royalty company. The one-month return for Uranium Royalty Corp. (NASDAQ:UROY) was 0.28%, and its shares gained 60.36% over the last 52 weeks. On December 15, 2025, Uranium Royalty Corp. (NASDAQ:UROY) stock closed at $3.59 per share, with a market capitalization of $491.152 million.

Riverwater Partners Micro Opportunities Strategy stated the following regarding Uranium Royalty Corp. (NASDAQ:UROY) in its third quarter 2025 investor letter:

"Uranium Royalty Corp. (NASDAQ:UROY) outperformed in the third quarter as accelerating global momentum toward nuclear power and surging uranium prices fueled investor enthusiasm across the sector. With spot uranium climbing into the high $70s low $80s per pound range and term prices following higher, market sentiment strengthened around the long-term supply deficit and nuclear energy’s role in clean, reliable baseload generation. Unlike traditional miners, UROY benefits from these price tailwinds without assuming operational or capital risk, as its royalty model provides pure exposure to uranium revenues from third-party producers. The company holds interests in several premium projects, including royalties on Cameco’s McArthur River and Cigar Lake mine—some of the most strategic assets in the uranium industry. This combination of structural leverage to uranium’s bull market, zero mining risk, and a growing portfolio of world-class royalties positions UROY as one of the most efficient and low-risk vehicles for investors seeking long-term exposure to the nuclear energy resurgence."

Uranium Royalty Corp. (NASDAQ:UROY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held Uranium Royalty Corp. (NASDAQ:UROY) at the end of the third quarter, which was 5 in the previous quarter. While we acknowledge the potential of Uranium Royalty Corp. (NASDAQ:UROY) 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 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.