What Makes Arq (ARQ) a Worthy Holding?
Minot Light Capital Partners, an investment management company, released its Q3 2025 investment letter. A copy of the letter can be downloaded here. In the quarter, Minot Light generated solid returns for limited partners, with a net of 7.6%. However, on a net basis, the performance underperformed the benchmarks, particularly the micro-cap benchmark’s 17.1% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Minot Light Capital Partners highlighted stocks such as Arq, Inc. (NASDAQ:ARQ). Arq, Inc. (NASDAQ:ARQ) is an environmental technology company. The one-month return for Arq, Inc. (NASDAQ:ARQ) was -9.14%, and its shares lost 53.28% over the last 52 weeks. On December 23, 2025, Arq, Inc. (NASDAQ:ARQ) stock closed at $3.28 per share, with a market capitalization of $140.036 million.
Minot Light Capital Partners stated the following regarding Arq, Inc. (NASDAQ:ARQ) in its third quarter 2025 investor letter:
"Arq, Inc. (NASDAQ:ARQ): Arq is one of the largest producers of activated carbons in the United States. Activated carbons are used by a wide variety of industries with the end goal of purifying and removing contaminants in water, air, and soil. Arq owns the Five Forks Mine in Saline, LA, which primarily produces lignite coal, the principal input into the company’s powdered activated carbon (PAC) products. In 2023, the company purchased feedstock in Corbin, KY giving it access to high quality recovered bituminous coal reserves, the principal input into the company’s granulated activated carbon (GAC) products. We find that Arq is extremely well positioned in the current environment given that it is the only domestic activated carbon producer with a fully vertically integrated supply chain.
Arq, Inc. (NASDAQ:ARQ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 14 hedge fund portfolios held Arq, Inc. (NASDAQ:ARQ) at the end of the third quarter, up from 11 in the previous quarter. Arq, Inc. (NASDAQ:ARQ)) continues to deliver strong results in Q3 2025, with revenues of $35.1 million. While we acknowledge the potential of Arq, Inc. (NASDAQ:ARQ) 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 thebest short-term AI stock.
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