When Institutional Buyers Spot Hidden Value: Cooper Creek's $63M Chemours Stake Signals Potential Turnaround

A Bold Bet on an Overlooked Chemical Giant

The market’s pessimism toward The Chemours Company (NYSE:CC) has created an opportunity that institutional investors are beginning to notice. Cooper Creek Partners Management, the New York-based investment firm, recently acquired nearly 4 million shares of the chemicals manufacturer during the third quarter, allocating approximately $63.1 million to build this new position. The timing of such a substantial investment—when most market participants remain bearish—raises an important question: has the broader market overlooked Chemours’ turnaround potential?

Understanding the Fund’s Strategic Move

According to SEC filings disclosed on November 14, Cooper Creek’s third-quarter holdings reveal a carefully curated portfolio of 88 U.S. equity positions totaling $3.3 billion. The Chemours stake, representing 1.9% of the fund’s reportable assets, ranks as a meaningful allocation. This concentration level suggests the fund sees more than just a speculative opportunity—it reflects conviction in the company’s fundamental value.

To contextualize this investment, the fund’s top holdings include:

• OI (NYSE:OI): $130.5 million (4.9% of AUM)
• NWL (NASDAQ:NWL): $130.2 million (4.9% of AUM)
• CXW (NYSE:CXW): $129.7 million (4.9% of AUM)
• BBWI (NYSE:BBWI): $129 million (4.8% of AUM)
• AAP (NYSE:AAP): $107 million (4% of AUM)

The Disconnect Between Price and Potential

Chemours shares currently trade at $12.79, presenting a stark contrast to historical valuations. Over the past twelve months, the stock has declined 41%, vastly underperforming the S&P 500’s 14% gain. More striking is the long-term picture: shares remain approximately 80% below their 2017 peak, suggesting that decades of industrial value have been erased from investor perception.

Yet beneath the depressed valuation lies operational improvement. The company’s latest earnings report tells a different story than the market price suggests:

• Third-quarter revenue: $1.5 billion (essentially flat year-over-year)
• Net income: $60 million (compared to a $32 million loss in the prior-year quarter)
• TTM revenue: $5.8 billion
• Dividend yield: 2.7%

The stabilization in profitability despite soft industrial demand reveals a company working through operational challenges rather than facing structural decline.

Which Business Segments Are Driving Recovery?

Chemours manufactures critical materials across multiple sectors: titanium dioxide pigments (Ti-Pure brand), refrigerants (Opteon), advanced performance materials, and industrial chemicals. In the recent quarter, strength in Opteon refrigerants offset weakness in titanium dioxide and advanced materials segments.

CEO Denise Dignam noted that “consolidated results exceeded expectations for the quarter,” signaling that management’s strategic execution remains on track. For investors seeking exposure to industrial chemicals and specialty materials, this operational momentum matters.

The Investment Thesis: Why Contrarian Bets Sometimes Work

When established institutional funds build significant new positions in beaten-down securities, it often signals that they’ve identified value the consensus has overlooked. In Chemours’ case, the formula appears compelling:

1. Depressed valuation following years of market skepticism
2. Improving operations as the company stabilizes after disruptions
3. Meaningful cash generation despite cyclical end-market pressures
4. Institutional conviction demonstrated through a material portfolio allocation

However, prospective investors should acknowledge the risks: the company carries meaningful leverage, and its end markets remain cyclical. Patience will be required as the turnaround unfolds.

The fact that sophisticated capital has bought into Chemours at these levels suggests that the gap between current market pricing and intrinsic value may be worth monitoring—even for those who remain skeptical of the chemicals sector’s near-term prospects.