Crossroads Capital LLC, an investment management company released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The Crossroads Capital Investment Partners, LP returned 3.5% net of all fees and expenses, bringing YTD net returns to 5.7%. The fund has compounded at 14.8% and 14.7% net, respectively, since inception, and over the last five years outperforming its most suitable benchmarks, as well as the S&P 500. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Crossroads Capital emphasized stocks such as Calumet, Inc. (NASDAQ:CLMT). Calumet, Inc. (NASDAQ:CLMT) manufactures and formulates a diversified slate of specialty branded products and renewable fuels. The one-month return of Calumet, Inc. (NASDAQ:CLMT) was -21.86%, and its shares lost 7.64% of their value over the last 52 weeks. On February 28, 2025, Calumet, Inc. (NASDAQ:CLMT) stock closed at $14.33 per share with a market capitalization of $1.232 billion.

Crossroads Capital stated the following regarding Calumet, Inc. (NASDAQ:CLMT) in its Q4 2024 investor letter:

"Calumet, Inc. (NASDAQ:CLMT) : Now, on to Calumet: As noted above, after months of delays, the company received conditional approval for its DOE loan in mid-October. Given its strategic importance to the realization of our view of Calumet’s underlying value, we researched this situation extensively, calling as many government agencies (including the air quality agency of Montana) as we could to better understand exactly how this DOE loan got across the line. Following conditional approval, that scuttlebutt ultimately paid off, as the final close of the loan came in early January, roughly within the timeline our diligence suggested it would.

On its face, this should have been a celebratory moment at Crossroads. In the immediate aftermath of the announcement, that sentiment certainly made all the sense in the world, as the company just closed what was likely the most transformational event in its 100+ year history. Keep in mind this was a transaction that amounted to both a large-scale debt re-fi AND a low-cost growth capex funding mechanism to fuel (pun intended) a major low-cost sustainable aviation fuel (“SAF”) project operating in perhaps the most highly sought-after niche within not just renewables, but the clean tech space and the energy industry more generally..." (Click here to read the full text)

Calumet, Inc. (NASDAQ:CLMT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Calumet, Inc. (NASDAQ:CLMT) at the end of the fourth quarter compared to 9 in the third quarter. While we acknowledge the potential of Calumet, Inc. (NASDAQ:CLMT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Calumet, Inc. (NASDAQ:CLMT) and shared Crossroads Capital's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2024 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.