Greystone Capital Management's recently published second-quarter 2025 investor letter showcases impressive financial achievements, with the median account return for their separately managed accounts reaching a notable +14.8% after fees. This performance significantly surpassed the S&P 500 and Russell 2000 indices, which recorded returns of +10.9% and +8.5% respectively during the same period. Year-to-date, Greystone's median account has yielded a +6.3% return net of fees, again outperforming the S&P 500's +6.2% and contrasting sharply with the Russell 2000's -1.8%.
A key focus of Greystone Capital Management’s investor communication was their positive assessment of Natural Resource Partners L.P. (NYSE: NRP), a company specializing in the ownership, management, and leasing of mineral properties, particularly coal royalties. Greystone views NRP as a compelling long-term investment, emphasizing the company's consistent efforts to reduce debt since 2017, aiming for a net cash balance sheet within the next 12-15 months. As of August 1, 2025, NRP shares closed at $102.68, with a market capitalization of $1.349 billion, demonstrating a 5.30% one-month return and a 15.10% gain over the past 52 weeks.
Greystone's strategic rationale for investing in NRP transcends near-term market fluctuations, focusing instead on the potential for substantial long-term gains driven by the company's robust debt management and its attractive position in the mineral properties sector. This proactive and forward-thinking investment philosophy underscores a belief in uncovering intrinsic value and fostering growth, ultimately contributing to a more stable and prosperous financial landscape for investors.