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

New York City-based Alta Fundamental Advisers initiated a new position in The Chemours Company (NYSE:CC), 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 one with identifiable levers.

Glossary

13F: A quarterly report filed by institutional investment managers disclosing their equity holdings to the U.S. Securities and Exchange Commission (SEC).

Assets under management (AUM): The total market value of assets that an investment firm manages on behalf of clients.

Dividend yield: Annual dividends paid by a company divided by its share price, shown as a percentage.

Forward P/E: Price-to-earnings ratio using forecasted earnings for the next 12 months.

Trailing EV/EBITDA: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization over the past 12 months.

Position: The amount of a particular security or asset held by an investor or fund.

Stake: The ownership interest or share an investor holds in a company.

Quarter-end: The last day of a fiscal quarter, used as a reference point for financial reporting.

Performance chemicals: Specialized chemical products designed for specific industrial or commercial applications.

End-market: The final industry or sector where a product or service is ultimately used.

TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends USA Today. The Motley Fool has a disclosure policy.