Here’s Why Methanex Corporation (MEOH) Shares Sold Off in Q3

Polaris Capital Management, an investment management company, released its third quarter 2024 investor letter. A copy of the same can be downloaded here. Global markets were in solidly positive territory for the third straight quarter of 2024 despite geopolitical volatility. Polaris Global Equity Composite (net of fees) returned 6.86% in the quarter, compared to 6.46% return for the MSCI World Index, gross dividends reinvested.  In addition, check the fund’s top five holdings to know its best picks in 2024.

Polaris Global Equity Strategy highlighted stocks like Methanex Corporation (NASDAQ:MEOH) in the third quarter 2024 investor letter. Methanex Corporation (NASDAQ:MEOH) is a methanol producing and distributing company. The one-month return of Methanex Corporation (NASDAQ:MEOH) was -1.13%, and its shares lost 5.00% of their value over the last 52 weeks. On December 20, 2024, Methanex Corporation (NASDAQ:MEOH) stock closed at $46.38 per share with a market capitalization of $3.125 billion.

Polaris Global Equity Strategy stated the following regarding Methanex Corporation (NASDAQ:MEOH) in its Q3 2024 investor letter:

“Barbell returns defined the materials sector, with gains from Linde PLC, Yara International, Smurfit Kappa (now Smurfit Westrock), Antofagasta PLC and Mondi PLC offset by two Canadian companies, Methanex Corporation (NASDAQ:MEOH) and Lundin Mining. Methanex shares fell after the company agreed to acquire the methanol business of OCI Global for a little more than $2 billion. Methanex is slated to get OCI’s interest in two methanol facilities in Texas as well as a low-carbon methanol production business and idled facility in the Netherlands. Following the news, Barclays downgraded the stock, citing concerns about operating reliability, increased leverage and investor rotation.”

The Most Industrial City in the US

An aerial view of a petrochemical manufacturing plant, its intricate network of pipes and vats reflecting the industry’s innovation and complexity.

Methanex Corporation (NASDAQ:MEOH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Methanex Corporation (NASDAQ:MEOH) at the end of the third quarter which was 19 in the previous quarter. While we acknowledge the potential of Methanex Corporation (NASDAQ:MEOH) 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 Methanex Corporation (NASDAQ:MEOH) and shared Carillon Chartwell Small Cap Value Fund’s views on the company. 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.