October 14, 2026 - Black Bear Value Partners, an investment advisory firm, issued its second-quarter 2026 investor letter. The letter can be downloaded here. The Black Bear Value Fund returned -10.3% in September, +2.5% for the quarter, and +4.1% year-to-date (YTD). In comparison, the S&P 500 saw a -0.4% return in September, +2.3% for the quarter, and +12.7% YTD. Despite significant volatility, the Fund's long-term investment opportunities remain solid, particularly in sectors like housing and metallurgical coal. The portfolio focuses on quality businesses at attractive prices to navigate current market challenges, including rising interest rates and fluctuating capital costs. The Fund's strategy incorporates a disciplined approach to short positions, reflecting concerns about overvalued sectors such as for-profit education and AI-related companies. Overall, long-term investors may see favorable returns amid current market conditions. Also, check the strategy's top five holdings to see its best picks in 2026.

In its Q3 2026 investor letter, Black Bear Value Partners highlighted Warrior Met Coal, Inc. (NYSE:HCC). Warrior Met Coal, Inc. (NYSE:HCC) is a non-thermal metallurgical coal producer. On October 13, 2026, Warrior Met Coal, Inc. (NYSE:HCC) closed at $93.92, with a $4.96 billion market capitalization. Warrior Met Coal, Inc. (NYSE:HCC) is up ~6.52% YTD, trading within a 52-week range of $61.87 to $111.42.

Black Bear Value Partners stated the following regarding Warrior Met Coal, Inc. (NYSE:HCC) in its Q3 2026 investor letter:

"Warrior Met Coal, Inc. (NYSE:HCC) appreciated approximately 9% during the third quarter and was approximately flat year to date, including dividends. Warrior Met Coal is a leading producer of premium metallurgical coal, which is used in steel production. Years of limited global investment in new capacity have constrained future supply, providing a favorable backdrop as steel demand improves. Our investment thesis does not depend on a significant recovery in coal prices.

Blue Creek, Warrior's new underground metallurgical coal mine in Alabama, is central to this opportunity. After several years of substantial development spending, the project is transitioning to production. As volumes ramp and construction spending has been completed, Warrior is positioned to expand its low-cost production base and convert more of its earnings into cash available to shareholders.