Chlor-alkali Market Tightening Drives Olin Corp. (OLN) Stock Recovery

3 weeks ago 15

Soumya Eswaran

Tue, August 4, 2026 astatine 10:46 AM CDT 3 min read

Hotchkis & Wiley, an concern absorption company, released its second-quarter 2026 capitalist missive for the "Hotchkis & Wiley Mid-Cap Value Fund." A transcript of the missive tin beryllium downloaded here. Equity markets posted beardown returns successful the 2nd 4th of 2026, with the Russell Midcap Index rising 13.8% and the Russell Midcap Value Index returning 13.4%, contempt concerns astir inflation, a hawkish Federal Reserve, and rising lipid prices owed to the Iran conflict. Narrow marketplace enactment was evident, peculiarly semiconductor stocks and different stocks successful the AI sector, which saw returns exceeding 100%. The Firm favors prime businesses with charismatic valuations, believing that fears regarding AI's interaction are overstated. The Hotchkis & Wiley Mid-Cap Value Fund lagged the Russell Midcap Value Index, achieving a 4.74% instrumentality successful the 2nd quarter, chiefly owed to underperformance successful exertion and vigor sectors, portion banal enactment successful healthcare contributed positively. In addition, delight cheque the Fund's apical 5 holdings to cognize its champion picks successful 2026.

In its Q2 2026 capitalist letter, Hotchkis & Wiley Mid-Cap Value Fund highlighted Olin Corporation (NYSE:OLN). Olin Corporation (NYSE:OLN), a starring shaper and distributor of chemic products that operates done Chlor Alkali Products and Vinyls, Epoxy, and Winchester segments, detracted from the fund's show during the quarter. On August 3, 2026, Olin Corporation (NYSE:OLN) closed astatine $18.62 per share. The one-month instrumentality for Olin Corporation (NYSE:OLN) was -10.22%, and its shares mislaid 2.05% implicit the past 52 weeks. Olin Corporation (NYSE:OLN) has a marketplace capitalization of $2.12 billion.

Hotchkis & Wiley Mid-Cap Value Fund stated the following regarding Olin Corporation (NYSE:OLN) successful its Q2 2026 capitalist letter:

"Olin Corporation (NYSE:OLN) is 1 of the largest planetary producers of chlor alkali chemicals and chlorine derivatives, and besides owns the Winchester ammunition brand. It is importantly underearning contiguous owed to below-normal commodity prices and demand, but a tightening five-plus twelvemonth supply/demand outlook successful North American chlor-alkali could thrust a pricing and measurement recovery— and arsenic the plaything shaper successful the region, Olin could seizure much than its stock of that improvement, with shareholder-friendly superior allocation and an investment-grade equilibrium expanse committedness reinforcing the case. The stock's diminution reflects an easing of tensions successful the Middle East which volition pb to a adjacent word loosening of supply/demand dynamics successful commodity chemicals. Olin besides announced a merger of equals with Huntsman that we judge is strategically dependable and volition assistance trim hazard implicit the intermediate word owed to synergy seizure and deleveraging."

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