2. Chart Industries, Inc. (NASDAQ:GTLS)
Number of Hedge Fund Holders: 55
Number of Hedge Funds That Bought: 33
Chart Industries, Inc. (NASDAQ:GTLS) is a leading manufacturer of cryogenic equipment for use in the industrial gas and clean energy markets. The company has worldwide operations and has four business divisions: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products, and Repair, Service & Leasing.
At the end of Q4 2022, 55 hedge funds were long Chart Industries, Inc. (NASDAQ:GTLS) and disclosed collective positions worth $663.5 million in the company. This is compared to 22 hedge funds in the third quarter of 2022, with stakes worth $339.2 million. The hedge fund sentiment for the stock is positive and the stock is one of the most-heavily-bought stocks by hedge funds in Q4 2022.
As of December 31, Alyeska Investment Group is the largest shareholder in Chart Industries, Inc. (NASDAQ:GTLS) and has disclosed a position worth $84.9 million in the company.
Here is what Baron Funds had to say about Chart Industries, Inc. (NYSE:GTLS) in its Q4 2022 investor letter:
“Chart Industries, Inc. (NYSE:GTLS) is a leading global manufacturer of highly engineered equipment servicing multiple applications in the clean energy and industrial gas markets. The company announced a large and transformational acquisition of Howden, a company of similar size to Chart, but the market hated the deal and the stock got hammered. The concerns were that Chart would have to take on lots of debt to do the deal, the acquired business is of lower quality, and the synergy estimates seemed aggressive. Our view, after much work and consideration, is that Howden is a fine business that fits very well with Chart, increasing its end-markets, expanding the geographic reach, and doubling the “nexus of clean” opportunities to address. We believe that the synergies are identified and significant, and that the deal will be accretive. We also believe that leverage will decline quickly from the free-cash-flow and asset dispositions we expect. Chart did a large equity raise near the end of the year at a depressed price, which we participated in and more than doubled our position in the stock. We believe Chart is a best-in-class industrial compounder focused on growing clean energy end-markets.
We added to our position in Chart Industries, Inc. during the quarter. Chart is a leader in cryogenic technology, process, and storage equipment sold into industrial gas and clean and traditional energy end-markets. We took advantage of a significant drop in share price when the company announced a $4.4 billion merger with private company Howden, a global leader in compressors and blowers, that approximately doubles Chart’s revenue and EBITDA. The stock sold off as the unexpected deal is the largest in the company’s history, which added integration risk, increased leverage at a time of elevated rates, and required the company to issue equity, all in the face of heightened macroeconomic uncertainty heading into 2023…” (Click here to read the full text)
