São Paulo-based Absolute Gestao de Investimentos initiated a new stake in Chart Industries (GTLS 0.08%), adding 440,746 shares valued at approximately $88.22 million, according to a November 13 SEC filing.
What Happened
Absolute Gestao de Investimentos disclosed a new position in Chart Industries (GTLS 0.08%), acquiring 440,746 shares during the third quarter. The stake, worth $88.22 million as of September 30, was revealed in a filing with the Securities and Exchange Commission (SEC) dated November 13. The fund reported 35 equity positions totaling $769.14 million in U.S. assets.
What Else to Know
The new position in Chart Industries represents 11.47% of Absolute Gestao de Investimentos' 13F reportable AUM as of September 30.
Top five holdings after the filing:
- NASDAQ: CYBR: $92.23 million (12.19% of AUM)
- NYSEMKT: EEM: $89.72 million (11.85% of AUM)
- NYSE: GTLS: $88.22 million (11.66% of AUM)
- NYSEMKT: EWZ: $48.85 million (6.45% of AUM)
- NASDAQ: EMXC: $48.27 million (6.38% of AUM)
As of Friday, Chart Industries shares were priced at $205.85, up just 5% over the past year and underperforming the S&P 500, which is instead up about 15% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Friday) | $205.85 |
| Market Capitalization | $9.25 billion |
| Revenue (TTM) | $4.29 billion |
| Net Income (TTM) | $66.70 million |
Company Snapshot
- Chart Industries designs and manufactures engineered equipment for the energy and industrial gas sectors, including cryogenic storage tanks, heat exchangers, regasification equipment, and specialty products for hydrogen, LNG, biogas, and CO2 capture.
- The company generates revenue through the sale of capital equipment, process technology, aftermarket services, and equipment leasing, with a diversified offering across four business segments.
- Primary customers include industrial gas producers, energy companies, and specialty end-markets such as aerospace, food and beverage, and water treatment industries worldwide.
Chart Industries, Inc. provides engineered equipment and solutions for the energy and industrial gas markets.
The company leverages its expertise in cryogenic and heat transfer technologies to serve critical infrastructure and specialty applications, supporting energy transition initiatives and industrial efficiency. Its broad product range and global service network position Chart Industries as a key partner for customers seeking advanced solutions in rapidly evolving markets.
Foolish Take
What makes this move interesting for long-term investors isn’t short-term price action -- it’s the conviction implied by concentration. Dedicating roughly 11% of reported U.S. equity assets to a single industrial name is a clear signal that the upside is being underwritten by fundamentals, not momentum. Plus, it's important to note that Chart has a pending takeover offer from Baker Hughes for $210 per share. It's unclear if the buy came before or after the announced acquisition, but there's a slight bit of upside baked in if the deal goes through as expected next year.
Meanwhile, Chart Industries is in the middle of one of the strongest operating stretches in its history. In the third quarter, orders jumped nearly 44% year over year to a record $1.68 billion, pushing total backlog past $6 billion. That demand is coming from LNG, data centers, hydrogen, carbon capture, and industrial gas customers who are committing capital years in advance. Even with reported GAAP losses tied to one-time merger and termination costs, adjusted operating margins climbed to roughly 23%, highlighting how much earnings power sits underneath the noise.
This investment also fits cleanly alongside the fund’s other large exposures to global growth and emerging market themes. Chart’s equipment touches energy security, electrification, and decarbonization simultaneously, which helps explain why it sits next to broad emerging market ETFs and cybersecurity holdings in the portfolio.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC, showing U.S. equity holdings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Net position change: The difference in the number or value of shares held in a security after a trade or series of trades.
Stake: The ownership interest or investment a fund or investor holds in a particular company.
Holding: A specific security or asset owned within a fund or investment portfolio.
Outperformed: Achieved a higher return compared to a specified benchmark or index over a given period.
Market capitalization: The total value of a company's outstanding shares, calculated as share price times shares outstanding.
Cryogenic: Related to very low temperatures; in industry, refers to equipment or processes involving liquefied gases.
Aftermarket services: Support and maintenance provided for products after their initial sale, including repairs, upgrades, or spare parts.
Process technology: Specialized equipment and methods used to transform raw materials into finished products in industrial settings.
Energy transition: The global shift from fossil fuels to cleaner, renewable energy sources and technologies.
TTM: The 12-month period ending with the most recent quarterly report.
