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Hotchkis & Wiley flags Olin as chlor-alkali outlook tightens
Olin shares ended August 3 at $18.62, down 10.2% over the prior month and 2.1% over the past 52 weeks, even as the fund points to a tightening five-plus year supply and demand outlook in North America.
Hotchkis & Wiley, which manages the Hotchkis & Wiley Mid-Cap Value Fund, highlighted Olin Corporation in its second-quarter 2026 investor letter, pointing to tightening supply and demand conditions for North American chlor-alkali over the next five-plus years. According to the firm, Olin could benefit as the swing producer in the region if pricing and volume recover, supported by shareholder-friendly capital allocation and an investment-grade balance sheet commitment.
The letter also described broader market conditions in the quarter, noting that the Russell Midcap Index rose 13.8% and the Russell Midcap Value Index gained 13.4% amid inflation concerns, a hawkish Federal Reserve, and rising oil prices tied to the Iran conflict. Hotchkis & Wiley said narrow market leadership was visible, with semiconductor and other AI-related stocks returning more than 100%.
Within its own fund performance, the Hotchkis & Wiley Mid-Cap Value Fund returned 4.74% in the second quarter, with the fund citing underperformance in technology and energy sectors as key headwinds and positive contribution from healthcare stock selection.
On Olin specifically, the outlet reported that the company closed at $18.62 per share on August 3, with a one-month return of -10.22% and a 52-week return of -2.05%. Yahoo Finance also noted Olin has a market capitalization of $2.12 billion, and that the firm referenced the company as a major producer of chlor-alkali chemicals and chlorine derivatives, including its Winchester ammunition brand.