The Cro Capital Report

Good morning, and welcome to another edition of The Cro Capital Report, your go-to analysis of markets, energy trends, and our portfolio strategy.

Markets at a Glance

Figure 1: Month-over-month economic Indicators (July 14-August 14, 2025)

Portfolio Performance Update: Outpacing the Market Amid Volatility

As of Thursday’s close, Cro Capital’s year-to-date return stands at +11.68%, outperforming the S&P 500’s +10.22% by more than 150 basis points. While the week was marked by sharp intraday swings and cross-sector volatility, our disciplined positioning allowed us to capture meaningful upside, led by a rally in REEMF, our rare earth elements mining company, and the initiation of a substantial new position in the Russell 2000 (IWM). IWM has reached a 6-month high in July 2024; however, it has since been on a decline and has been downgraded as a “hold” by August 8, 2025. It offers growth potential, as small-caps have historically performed well in bullish markets. The current low VIX and rising Treasury yields give us a favorable environment for adding this to our portfolio.

Why We Added to the Russell 2000

The Russell 2000 has significantly lagged the broader market in 2025, up only about 3 percent year-to-date compared to the S&P 500’s double-digit gain. We believe this underperformance is largely the result of sustained high interest rates and a greater sensitivity to potential tariff policy changes. With an optimistic outlook for at least one (and likely three) rate cuts before year-end, we expect small and mid-cap companies to emerge from their shell. This presents what we view as an attractive recovery opportunity, particularly given IWM’s undervaluation relative to its historical P/E ratio. Positioning into this, we expect a re-rating, especially as the S&P 500’s 8.67% monthly rally signals market momentum.

Winners and Drivers of Performance

Our conviction in uranium and rare earths continues to be rewarded with REEMF and URA as they remain our highest-returning positions of 2025. Reflecting both strong commodity market dynamics and supportive policy tailwinds, including a 7.39% uranium price surge to $70.50 price point and soaring REE demand fueled by clean energy and national security needs. TSLA also continues to contribute positively despite short-term volatility, while steady gains in core equity ETF positions such as SPLG, VIG, and IEUR have provided a stable foundation for the portfolio. Policies such as U.S. initiatives to secure mineral supply domestically while restricting Chinese exports on REEs have shown us there are amplified gains for REEMF’s Bear Lodge Project (Wyoming critical rare earth plant) and URA’s will target a 22% increase in production in 2025.

Looking Ahead

While macroeconomic risks remain, including Federal Reserve policy shifts and geopolitical developments, we are confident in our current allocation. Our blend of secular growth exposures (TSLA, REEMF, URA) targeted thematic investments, and a new value-oriented allocation to small caps places with IWM positions us to sustain a strong position to sustain our lead over the broader market. The anticipated rate cuts, combined with the low VIX and Treasury yields, support the outlook for recovery and continued commodity strength. By maintaining a balanced portfolio and actively managing our positions, we are aiming to capture most of the upside of the market and mitigate risk with a new market landscape approaching.

Thanks for reading The Cro Capital Report.
— The Cro Capital Team

*The information provided in The Cro Capital Report is for informational and educational purposes only and should not be construed as investment advice, a recommendation, or an offer to buy or sell any securities. The views expressed are those of Cro Capital and are subject to change at any time without notice. While we strive to ensure accuracy, we make no representations or warranties as to the completeness or reliability of the content. Always do your own research and consult with a licensed financial advisor before making any investment decisions. Investing involves risk, including the potential loss of principal.