Is Celanese (CE) a Great Long-Term Buy?

Vltava Fund, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. In its Q1 2022 investor letter, Vltava Fund talked about the impact of the Russian and Ukrainian economy’s collapse on the global economy and mentioned some changes in its portfolio. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Vltava Fund mentioned Celanese Corporation (NYSE:CE) and explained its insights for the company. Founded in 1918, Celanese Corporation (NYSE:CE)  is an Irving, Texas-based global technology and specialty materials company with a $15.6 billion market capitalization. Celanese Corporation (NYSE:CE)  delivered a -13.73% return since the beginning of the year, while its 12-month returns are down by -4.57%. The stock closed at $144.98 per share on April 12, 2022.

Here is what Vltava Fund has to say about Celanese Corporation (NYSE:CE) in its Q1 2022 investor letter:

“We then used the money freed up to, among other things, open three new positions. The stock price declines during the Russian invasion brought a lot of good prices to the market. Out of all the possibilities we considered, we picked the stocks of Celanese (CE).

Celanese is the world’s largest producer of acetic acid and its chemical derivatives, including vinyl acetate monomers and emulsions. Their applications are used in a wide range of industries, such as automotive tobacco, coatings, construction, energy, telecommunications, food, and medical. Celanese recently closed the acquisition of a large part of DuPont’s business, which will make Celanese an even bigger player in the industry while reducing the cyclicality of it business. The acquisition is quite large and should deliver significant value to shareholders that in our view is not at all presently reflected in the share price. Celanese is a business that stands more or less aside from the main interests of most investors, but it is a company with very high returns on capital, strong free cash flow, and historically very efficient resource allocation.”

Photo by Yogesh Phuyal on Unsplash

Our calculations show that Celanese Corporation (NYSE:CE) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Celanese Corporation (NYSE:CE) was in 35 hedge fund portfolios at the end of the first quarter of 2022, compared to 26 funds in the previous quarter. Celanese Corporation (NYSE:CE) delivered a -15.30% return in the past 3 months.

In March 2022, we shared another hedge fund’s views on Celanese Corporation (NYSE:CE) in another article. You can find more investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.