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

Core Insights - Crossroads Capital LLC reported a 2.7% net return in Q4 2025, with an annual return of 37.7% net, and a compounded rate of 21.2% gross and 17.1% net since inception [1] - The fund's overall non-delta adjusted gross and net exposure were 89.7% and 72.1% respectively by the end of December 2025 [1] - Market sentiment shifted rapidly in Q4 2025 due to concerns over the AI bubble, Federal Reserve uncertainty, and bearish positioning, highlighting market volatility [1] - The firm remains cautiously optimistic about market breadth and interest in small-cap stocks carrying into 2026 [1] Company-Specific Insights - Calumet, Inc. (NASDAQ:CLMT) is highlighted as a specialty products and renewable fuels manufacturer, with a market capitalization of $2.34 billion [2] - Calumet, Inc. stock closed at $26.96 on February 27, 2026, with a one-month return of 18.61% and a 52-week gain of 100.30% [2] - Crossroads Capital sold its position in Calumet, Inc. due to a disastrous DOE loan announcement and an ATM offering that undermined confidence in management [3] - Calumet, Inc. was held by 17 hedge fund portfolios at the end of Q4, down from 18 in the previous quarter, indicating a slight decrease in popularity among hedge funds [4] - The firm believes that certain AI stocks present greater upside potential compared to Calumet, Inc., despite acknowledging its investment potential [4]