What Makes Arq (ARQ) a Worthy Holding?

Core Insights - Minot Light Capital Partners reported a net return of 7.6% for Q3 2025, which underperformed against benchmarks, particularly the micro-cap benchmark's return of 17.1% [1] - The fund's top five holdings are highlighted as key investment picks for 2025 [1] Company Overview: Arq, Inc. (NASDAQ:ARQ) - Arq, Inc. is identified as one of the largest producers of activated carbons in the United States, which are utilized across various industries for purifying and removing contaminants in water, air, and soil [3] - The company owns the Five Forks Mine in Saline, LA, primarily producing lignite coal, a key input for its powdered activated carbon (PAC) products [3] - In 2023, Arq acquired feedstock in Corbin, KY, enhancing its access to high-quality recovered bituminous coal reserves, essential for its granulated activated carbon (GAC) products [3] - Arq is noted for having a fully vertically integrated supply chain, positioning it well in the current market environment [3] Financial Performance - Arq, Inc. reported revenues of $35.1 million in Q3 2025 [4] - The stock experienced a one-month return of -9.14% and a significant decline of 53.28% over the past 52 weeks, closing at $3.28 per share with a market capitalization of $140.036 million as of December 23, 2025 [2] Hedge Fund Interest - Arq, Inc. was held by 14 hedge fund portfolios at the end of Q3 2025, an increase from 11 in the previous quarter, indicating growing interest among institutional investors [4]