The Cro Capital Report

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

Month-over-month economic Indicators (Sept. 5 - Sept. 11, 2025)

Portfolio Performance Update: Driving Returns with Conviction and Risk Management 

As of September 11, 2025, Cro Capital’s year-to-date return stands at +14.06%, continuing to outperform the S&P 500 (+12.25%). While the margin of outperformance has narrowed compared to two weeks ago, this reflects near-term weakness in one of our highest-conviction holdings, REEMF. Despite limited news flow, the stock has experienced a delayed pullback. We remain confident in the company’s business model and long-term potential, having increased our position following the initial decline to $0.91. Shares have since moved lower to $0.82, and we continue to hold with conviction.

Elsewhere in the portfolio, we initiated a position in Fluence Energy (FLNC) following a successful pitch by Cro Capital members. We opened a 10.6% allocation at $6.82, making FLNC our fourth-largest holding. We view energy storage as a critical long-term theme and will continue to dollar-cost average into this position on opportunistic trading days. Meanwhile, IWM (Russell 2000 ETF), URA, and GOOGL have continued to outperform, helping to offset recent REEMF weakness.

We also regularly revisit past exits to evaluate our decision-making. One example is AMDL, which we sold at the end of July at $11.50, locking in a 34% gain. The stock subsequently rallied to $13.30 before retracing sharply to $9.62 today. While it is natural to reflect on whether we sold “too early,” the outcome underscores the importance of adhering to a disciplined investment process. By maintaining conviction in our framework rather than reacting to short-term price action, we continue to drive sustainable long-term performance.

Stored Energy: The Next Frontier in U.S. Energy Security

In the last edition of the Cro Capital Newsletter, we introduced stored energy, an emerging technology we believe has the potential to revolutionize America’s energy industry. This is a technology we see crucial to America’s energy security, which is at the forefront of policymaking.  Storing excess power allows energy to be stored when supply is high and released when demand peaks. This allows for smarter, faster responses to emergencies or sudden changes in energy use. Additionally, a country less reliant on imported energy or equipment has more independence during international negotiations and trade disputes.

The urgency has become clear: China has reportedly installed more solar panels than the rest of the world combined in the first half of 2025, and currently controls more than 80% of all manufacturing stages of solar panels, according to the International Energy Agency. This dominance allows China to capitalize on the decarbonization of the world. History reminds us that Europe’s dependence on Russian gas created vulnerabilities, making U.S. reliance on Chinese solar equipment concerning. It gives Beijing increasing political leverage on the U.S. at a time when trade tensions are already high. This is why stored energy and domestic supply chains are not just technological opportunities, but strategic for the security of America. 

We have highlighted in our thesis on uranium that our over-reliance on foreign suppliers creates risks for fueling our reactors and powering our homes. Now, we are seeing a parallel unfolding in the energy storage sector. That’s why the recent milestone from Fluence, delivering the first fully U.S.-manufactured energy storage system, is so significant. By expanding a domestic supply chain, Fluence is positioning itself at the center of America’s clean energy transition. What sets Fluence apart is not only its manufacturing leadership but also its ability to unlock Inflation Reduction Act tax credits for solar and other renewable projects that use domestically produced equipment. This gives the company a unique competitive edge while encouraging broader adoption of U.S.-sourced technology.

We believe Fluence represents a compelling investment opportunity as it scales production, strengthens supply security, and drives the next wave of renewable growth.

Macro Madness: CPI, Mortgages, and Oracle's AI Movement

A lot of news recently on the economic landscape that has had a lot of cautious optimism, and all-time highs. The August CPI Data just dropped, and CPI rose 0.4% month-over-month, pushing the annual rate to 2.9%. Core inflation is looking like it wants to go down, but is holding steady at 3.1%. With the Federal Reserve's decision on September 17, Powell will look to cut rates. Meanwhile, big news yesterday was that mortgage rates are down from last week's 6.45% to 6.25% and are expected to fall more by the end of the month. The Fed is being watched not just by us, like hawks, but also by first-time home buyers and home buyers in general for any hint of a cut in rates. ORACLE, a surprise rockstar of the week. Even with the missed earnings, their stock exploded 36% with the news of 455$ billion in locked-in revenue and AI partnerships with OpenAI, Meta, and Nvidia, Oracle is putting itself in a perfect position as the backbone of the AI race. The CEO Safra Catz said “a who’s who of AI” and the markets seem to agree, and price targets are flying north of 400$. With all this news this week, there are still key market drivers that we will look out for: the Fed’s dot plot and the Summary of Economic Projections. There will always be an inflation narrative with the retail sales and GDP revisions. Oracle can be a signal for the whole tech sector as momentum is growing within. All together: Inflation is sticky and tough to get rid of, housing is a slippery slope, and Oracle has the most swagger. 

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.