The filing of a Form 3 by Discovery Capital Management, a known event-driven fund, is a strong signal of activist or strategic interest in Ramaco Resources. Traders should watch for a potential 13D filing with more detail on intentions, which could include pushing for operational changes, asset sales, or a sale of the company. The $27M convertible note with a $32.74 conversion price (above the current stock price if below that level) provides downside protection and upside optionality for the fund.
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Executive Summary
Discovery Capital Management, led by Robert K. Citrone, filed a Form 3 initial statement of beneficial ownership in Ramaco Resources (METC), disclosing a significant position: 5,311,360 Class A shares, 128,930 Class B shares, total return swaps on 1,978,779 Class A shares, and $27M in 0% convertible senior notes due 2031 (conversion price $32.74). This is a material new activist or event-driven stake from a well-known multi-strategy fund, signaling potential engagement or strategic interest in the coal miner. The combination of common stock, swaps, and convertible notes creates a complex, levered exposure that could precede operational or strategic changes at the company.
Key Facts
- Discovery Capital Management and affiliates filed a Form 3 initial beneficial ownership statement for Ramaco Resources (METC).
- The filing discloses 5,311,360 shares of Class A Common Stock and 128,930 shares of Class B Common Stock held indirectly through funds.
- The funds hold total return swaps on an aggregate of 1,978,779 shares of Class A Common Stock.
- The funds hold $27,000,000 in aggregate principal amount of 0% Convertible Senior Notes due November 1, 2031, with an initial conversion price of $32.74 per share.
- Robert K. Citrone is the managing member of Discovery Capital Management and a director of the fund.
- The filing date is August 10, 2026, with a period of report of August 5, 2026.
Financial Impact
Discovery Capital disclosed a position of 5.31M Class A shares, 128,930 Class B shares, swaps on 1.98M shares, and $27M in convertible notes. At a $649M market cap, the common stake alone represents roughly 5-6% of outstanding shares, with additional synthetic exposure via swaps and potential dilution from the convertible.
Risk Factors
- The fund's intentions are not yet disclosed; this could be a passive investment or a prelude to activism that may not materialize.
- The complex structure (swaps + convertible + common) may indicate hedging rather than outright bullish conviction.
- Coal sector faces regulatory and demand headwinds that could limit upside regardless of activist involvement.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 3 Filing (METC) — Batch item 1 | 0000919574-26-004905 |
| Document: 0000919574-26-004905-index.html | 0000919574-26-004905 |
| Document: 0000919574-26-004905.txt | 0000919574-26-004905 |
| 3 Filing (METC) — Batch item 4 | 0000919574-26-004905 |
| Document: 0000919574-26-004905-index.html | 0000919574-26-004905 |
| Document: 0000919574-26-004905.txt | 0000919574-26-004905 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 28, 2026 29d ago | 8-K | $8.98 $6.91 | ▼ −23.05% | ▼ −23.02% | $7.67 (−14.59%) |
Sep 10, 2026 6w ago | 8-K | $11.45 $8.49 | ▼ −25.85% | ▼ −27.98% | $7.67 (−33.01%) |
Sep 4, 2026 7w ago | 8-K | $13.20 $8.00 | ▼ −39.43% | ▼ −40.03% | $7.67 (−41.89%) |
Aug 20, 2026 9w ago | 8-K | $11.15 $9.22 | ▼ −17.27% | ▼ −17.27% | $7.67 (−31.18%) |
Aug 10, 2026 11w ago | 3 | $10.21 $12.28 | ▲ +20.27% | ▲ +21.33% | $7.67 (−24.88%) |
Jun 15, 2026 19w ago | 8-K | $14.67 $12.63 | ▼ −13.91% | ▼ −13.16% | $7.67 (−47.72%) |
Jun 11, 2026 19w ago | Institutional Cluster | $14.87 $12.48 | ▼ −16.07% | ▼ −17.96% | $7.67 (−48.42%) |
Jun 10, 2026 19w ago | Insider Cluster | $14.87 $12.48 | ▼ −16.07% | ▼ −17.96% | $7.67 (−48.42%) |
Mar 26, 2026 30w ago | Insider Cluster | $13.97 $13.79 | ▲ +1.29% | ▲ +11.95% | $7.67 (+45.10%) |
Mar 24, 2026 31w ago | Insider Cluster | $14.29 $14.92 | ▼ −4.41% | ▲ +4.49% | $7.67 (+46.33%) |
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