Here's Why Crossroads Capital Sold Its Stake in Calumet (CLMT)

Crossroads Capital LLC, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund rose 2.7% net of fees and expenses in Q4 2025, bringing its annual return to 37.7% net. Since its inception, the Fund compounded at the rate of 21.2% gross and 17.1% net.  By the end of December 2025, the Fund's overall non-delta adjusted gross and net exposure were recorded at 89.7% and 72.1%, respectively. After a strong Q3, November revealed how rapidly market sentiment can shift due to AI bubble concerns, Federal Reserve uncertainty, and increasingly bearish positioning. Q4 revealed the market's increasingly volatile nature while also demonstrating reflexivity rather than avoiding it. The firm remains cautiously optimistic that the positive trend in market breadth and a growing interest in small-cap stocks will carry into 2026, giving it a much-needed boost that Crossroads has long anticipated. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Crossroads Capital highlighted stocks like Calumet, Inc. (NASDAQ:CLMT). Calumet, Inc. (NASDAQ:CLMT) is a specialty products and renewable fuels manufacturer to various consumer-facing and industrial markets. On February 27, 2026, Calumet, Inc. (NASDAQ:CLMT) stock closed at $26.96 per share. One-month return of Calumet, Inc. (NASDAQ:CLMT) was 18.61%, and its shares gained 100.30% over the past 52 weeks. Calumet, Inc. (NASDAQ:CLMT) has a market capitalization of $2.34 billion.

Crossroads Capital stated the following regarding Calumet, Inc. (NASDAQ:CLMT) in its fourth quarter 2025 investor letter:

"Our only meaningful detractor was Calumet, Inc. (NASDAQ:CLMT), which we sold following the company's disastrous DOE loan announcement and an unnecessary and, frankly, baffling ATM offering that destroyed our confidence in management. A constructive macro environment provided some reprieve for them as the year closed out, but we lost faith in the team’s ability to steward capital going forward."

Calumet, Inc. (NASDAQ:CLMT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 17 hedge fund portfolios held Calumet, Inc. (NASDAQ:CLMT) at the end of the fourth quarter, compared to 18 in the previous quarter. While we acknowledge the potential of Calumet, Inc. (NASDAQ:CLMT) 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 Calumet, Inc. (NASDAQ:CLMT) and shared a bullish thesis 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.