Steel Stock Up 47% in a Year and This Fund Just Walked Away From a $6.5 Million Position

2 hours ago 1

Jonathan Ponciano, The Motley Fool

Fri, January 23, 2026 astatine 7:50 AM CST 4 min read

Kawa Capital sold 2,094,404 shares of Gerdau S.A. successful the 4th quarter.
The transaction represented a 15.0% alteration successful reported 13F AUM.
The shares were antecedently worthy astir $6.49 million.
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Kawa Capital Management sold retired its full presumption successful Gerdau S.A. (NYSE:GGB), according to a January 21 SEC filing, with an estimated transaction worth of $6.49 cardinal based connected the last-disclosed value.

According to a filing with the Securities and Exchange Commission dated January 21, Kawa Capital Management sold each of its 2,094,404 shares of Gerdau S.A. during the 4th quarter. The estimated transaction worth was $6.49 million.

This was a afloat liquidation of a antecedently important holding, reducing Gerdau S.A. vulnerability from 11.8% of 13F AUM to 0%.

Top holdings aft the filing:

NYSE:BDN: $15.73 cardinal (36.4% of AUM)
NYSE:ONL: $12.54 cardinal (29.0% of AUM)
NYSE:ARE: $7.93 cardinal (18.3% of AUM)
NYSE:VALE: $7.05 cardinal (16.3% of AUM)

As of January 20, Gerdau S.A. shares were priced astatine $4.16, up 47.0% implicit the past twelvemonth and vastly outperforming the S&P 500’s 14% summation successful the aforesaid period.

Metric

Value

Price (as of 2026-01-20)	$4.16
Market Capitalization	$8.60 billion
Revenue (TTM)	$13.10 billion
Net Income (TTM)	$564.19 million

Gerdau offers a wide portfolio of alloy products, including semi-finished billets and blooms, agelong rolled products, peculiar steels, level products, and robust ore.
The institution operates a vertically integrated concern exemplary encompassing alloy production, mining, and distribution, generating gross from nonstop sales, distributors, and a retail web crossed the Americas.
It serves construction, manufacturing, automotive, agricultural, lipid and gas, upwind energy, and infrastructure sectors, targeting some concern clients and resellers.

Gerdau S.A. is simply a starring alloy shaper successful the Americas, with a diversified merchandise offering and an extended organisation network. The institution leverages its integrated operations and wide geographic scope to service a wide scope of concern and infrastructure customers. Its scale, merchandise diversity, and established beingness successful cardinal markets enactment its competitory positioning wrong the planetary alloy industry.

Gerdau has been a quiescent victor implicit the past year, with shares up astir 47% arsenic pricing discipline, resilient North American demand, and a streamlined outgo operation lifted results. That benignant of show people changes the hazard mathematics for concentrated portfolios.

In its astir caller net update, the institution highlighted dependable currency procreation and continued superior returns, including dividends and buybacks, adjacent arsenic alloy markets normalized from earlier peaks. Management emphasized equilibrium expanse spot and flexibility, pointing to disciplined capex and a absorption connected higher borderline products tied to infrastructure and concern demand. Those are existent positives for semipermanent investors looking astatine durability alternatively than spot pricing.

But discourse matters. This presumption antecedently represented astir 12% of the fund’s reportable assets, making it an outsized vulnerability comparative to the remainder of the portfolio, which present leans heavy into existent property and diversified materials names similar Vale. Fully exiting aft a crisp rally suggests portfolio operation and hazard absorption whitethorn beryllium driving the determination arsenic overmuch arsenic fundamentals.