Ramaco Resources (METC) Fell in Line with Peers as AI Narrative Faces Investor Scrutiny

Polen Capital, an investment management company, released its fourth-quarter investor letter for “Polen 5Perspectives Small Growth Strategy”. A copy of the letter can be downloaded here. The Polen 5Perspectives Small Growth Composite Portfolio returned -1.3% gross and -1.5% net of fees in the fourth quarter of 2025, compared to a 1.2% return of the Russell 2000 Growth Index. Following double-digit returns in 2Q and 3Q, small caps concluded the year with a 1.2% return in 4Q. Biotech stood out as a major performer during the quarter, expanding beyond the AI theme. The small-cap asset class has gained attention due to declining interest rates and improving earnings growth, but the firm is most excited about its structural tailwinds, including the rapid pace of innovation and the opportunity it presents for disciplined investors. Over the fourth quarter, the Strategy nearly doubled its Biotech exposure due to opportunities presented by rising interest rates, M&A, and AI tailwinds. The name of the Strategy changed from Polen U.S. Small Cap Growth to Polen 5Perspectives Small Growth, to emphasize the significance of the 5 viewpoints framework and the influence of perspective in investing. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Polen 5Perspectives Small Growth Strategy highlighted stocks like Ramaco Resources, Inc. (NASDAQ:METC). Ramaco Resources, Inc. (NASDAQ:METC) is a metallurgical coal producer based in Lexington, Kentucky. On February 23, 2026, Ramaco Resources, Inc. (NASDAQ:METC) stock closed at $17.20 per share. One-month return of Ramaco Resources, Inc. (NASDAQ:METC) was -22.14%, and its shares gained 88.93% over the past 52 weeks. Ramaco Resources, Inc. (NASDAQ:METC) has a market capitalization of $1.138 billion.

Polen 5Perspectives Small Growth Strategy stated the following regarding Ramaco Resources, Inc. (NASDAQ:METC) in its fourth quarter 2025 investor letter:

"Ramaco Resources, Inc. (NASDAQ:METC) is a leading critical minerals producer, supplying metallurgical coal for the steelmaking industry and developing a major rare earth elements (REEs) deposit at its Brook Mine in Wyoming aimed at strengthening domestic supply chains for defense, batteries, and advanced technologies. The stock fell in line with other rare earths peers as the AI narrative drew increasing scrutiny from investors, which was further exacerbated by weaker than expected earnings results and dilution concerns following the issuance of a $300M convertible debt offering."

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 fourth quarter, the same as in the previous quarter. While we acknowledge the potential of Ramaco Resources, Inc. (NASDAQ:METC) 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 Ramaco Resources, Inc. (NASDAQ:METC) and shared Signia Capital Management's views on the company. 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.