This Chemicals Stock Is Down 32% but Just Became a Top 5 Holding After One Fund's $13 Million Bet | The Motley Fool

New York City-based Alta Fundamental Advisers initiated a new position in The Chemours Company ( CC +1.10%), acquiring 800,000 shares valued at an estimated $12.67 million, according to a November 13 SEC filing. What Happened Alta Fundamental Advisers disclosed in a November 13 SEC filing that it established a new position in The Chemours Company during the third quarter. The fund reported owning 800,000 shares with a quarter-end value of $12.67 million. This marks the fund’s fifth-largest position out of 20 total holdings at quarter-end. What Else to Know The new stake in CC makes up 5.41% of Alta Fundamental Advisers LLC’s reported U.S. equity assets under management. Top holdings after the filing: NYSE:GCI: $46.1 million (22.4% of AUM) NASDAQ:LILAK: $15.6 million (7.6% of AUM) NYSE:BTU: $14.9 million (7.2% of AUM) NYSE:ACHR: $12.8 million (6.2% of AUM) NYSE:CC: $12.7 million (6.2% of AUM) As of Monday, shares of The Chemours Company were priced at $12.02, down 32% over the past year and well underperforming the S&P 500's 16% gain in the same period. Company Overview Metric Value Revenue (TTM) $5.84 billion Net income (TTM) ($320.00 million) Dividend yield 3% Price (as of Monday) $12.02 Company Snapshot The Chemours Company produces titanium dioxide pigments, refrigerants, specialty chemicals, and advanced materials for industries such as coatings, packaging, electronics, energy, and automotive. The company operates a diversified chemicals business model, generating revenue through the manufacture and sale of performance chemicals and materials to industrial and commercial customers worldwide. It serves a global customer base across North America, Asia Pacific, EMEA, and Latin America, targeting sectors including coatings, plastics, electronics, transportation, and industrial manufacturing. The Chemours Company is a leading global provider of performance chemicals, with a broad portfolio spanning titanium technologies, thermal and specialized solutions, advanced performance materials, and chemical solutions. The company leverages its scale and technical expertise to supply essential materials that enable a wide range of industrial and consumer applications. Chemours' strong market presence and diversified end-market exposure support its competitive positioning within the specialty chemicals sector. Foolish Take What matters for long-term investors is not that this position was initiated, but how large it is relative to everything else. At more than 5% of reported assets and immediately ranking among the fund’s top five holdings, this is a statement position, not a speculative add. That matters because this portfolio is otherwise concentrated in deeply cyclical and out-of-favor names, suggesting a willingness to lean into discomfort rather than chase momentum. The fundamentals help explain the calculus. In the third quarter, The Chemours Company generated $1.5 billion in revenue, flat year over year, but swung to a net income of $60 million from a $32 million loss a year earlier. Adjusted EBITDA came in at $195 million, and free cash flow reached $105 million, a 54% conversion rate. Strength in Thermal and Specialized Solutions, where Opteon refrigerant sales jumped 80%, helped offset weakness in titanium dioxide and advanced materials. Ultimately, this is not a clean story, but it is a cash-generating...

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