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News  ›  The Motley Fool

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

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

Alta Fundamental Advisers acquired 800,000 shares of The Chemours Company (CC) valued at $12.67 million in Q3, making it the fund's fifth-largest holding at 6.2% of AUM. Despite CC being down 32% over the past year, the significant position size suggests conviction in the company's cash-generating fundamentals, including Q3 net income of $60 million and free cash flow of $105 million.

Insights
ALC   positive

Gained 5.42% after reporting upbeat third-quarter financial results with positive fiscal year outlook


CC   positive

Despite a 32% year-over-year decline, the stock demonstrates positive fundamentals with Q3 net income swing to $60 million profit, $105 million free cash flow (54% conversion rate), and strong Opteon refrigerant sales growth of 80%. A major fund's substantial $12.67 million position (5.41% of AUM, top 5 holding) signals institutional confidence in the company's cash-generating ability and recovery potential.