Buckley Capital Advisors, an investment management company, released its third quarter 2024 investor letter. A copy of the letter can be downloaded here. Since the third quarter was not great, 2024 has not been a great year. The fund has not performed as well in relation to benchmarks, and this is the first time in five years that the firm has this type of underperformance relative to the benchmarks. The fund returned 4.77% in the third quarter compared to a 10.11% return for the iShares Russell 2000 Value and a 9.25% return for the Shares Russell 2000 indexes. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Buckley Capital highlighted stocks like The Chemours Company (NYSE:CC), in the third quarter 2024 investor letter. The Chemours Company (NYSE:CC) offers performance chemicals that operates through titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials segments. The one-month return of The Chemours Company (NYSE:CC) was -19.23%, and its shares lost 44.26% of their value over the last 52 weeks. On December 20, 2024, The Chemours Company (NYSE:CC) stock closed at $17.72 per share with a market capitalization of $2.65 billion.
Buckley Capital stated the following regarding The Chemours Company (NYSE:CC) in its Q3 2024 investor letter:
The Chemours Company (NYSE:CC) is an investment we have owned since 2018, very profitably until this year. It is composed of 3 different businesses – TSS, APM, and TT – that are each the #1 or #2 players in their respective categories.
The company’s Thermal & Specialized Solutions division (TSS) sells environmentally friendly refrigerants on a global basis, with the primary refrigerants being Opteon and Freon. Opteon is more environmentally friendly, therefore Freon is being slowly phased out by government mandate. This is very beneficial for Chemours since Opteon is very high-margin and has little competition, whereas Freon has more competitors and overall lower margins. This should lead to high single-digit growth in the TSS segment, with 30%+ EBITDA margins. We believe it is possible TSS margins could get to 40%, given that they have neared that number in the past and that as Chemours sells more Opteon, its margins should trend higher. This means TSS should be able to earn around $800m in EBITDA in the next 2 years…” (Click here to read the full text)
A close up of a laboratory beaker filled with colorful chemicals, signifying the company’s specialty chemicals.
The Chemours Company (NYSE:CC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held The Chemours Company (NYSE:CC) at the end of the third quarter which was 33 in the previous quarter. The Chemours Company (NYSE:CC) consolidated net sales for the third quarter were approximately $1.5 billion, up 1% compared to Q3 2023. While we acknowledge the potential of The Chemours Company (NYSE:CC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed The Chemours Company (NYSE:CC) and shared the list of worst specialty chemical stocks to buy according to short sellers. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.