Axel Capital’s Anna Nikolayevsky Is Betting Big on Lithium Production

Let’s start with Albemarle Corporation (NYSE:ALB), in which Axel Capital trimmed its stake by 15% over the quarter to 104,000 shares worth $14.18 million at the end of September. Albemarle Corporation (NYSE:ALB) is a $15 billion developer of specialty chemicals, whose stock has surged by over 65% over the last 12 months. One of the reasons why Nikolayevsky is betting on Albemarle Corporation is its production of battery-grade lithium that is used in the production of electric vehicles.

Last year, Nikolayevsky spoke at the “Capitalize For Kids” conference in Toronto, where she mentioned that oil prices would be capped at $50 mainly due to changes in the transportation industry. One of the key change is the fast advancement of electric vehicles. “Bottom line here is there’s a lot of capital been committed. Electric vehicles are not a fad. This is a permanent industry shift. Ultimately, it does not matter which company wins or leads to profitability the fastest. They will still take share as a group,” she said.

Aside from Axel Capital, other funds bullish on Albemarle Corporation (NYSE:ALB) are David Cohen and Harold Levy’s Iridian Asset Management, Stephen Mandel’s Lone Pine Capital, and Robert Polak’s Anchor Bolt Capital.

In FMC Corp (NYSE:FMC), Nikolayevsky’s fund initiated a position during the third quarter, having amassed 116,000 shares valued at $10.36 million. FMC Corp (NYSE:FMC)’s stock is 60% in the green year-to-date. The company is another producer of chemicals that operates in two segments: Agricultural Solutions and Lithium. In its last 10-Q report, FMC Corp (NYSE:FMC) said that it plans to continue to expand its lithium hydroxide operations and its strategic intent is to spin it off as a standalone, publicly-traded company. In the second quarter, FMC Corp (NYSE:FMC) generated revenue of $656.80 million, of which $74 million came from its FMC Lithium operations.

One of the largest shareholders of FMC Corp (NYSE:FMC) is Larry Robbins’ Glenview Capital, which held nearly 13 million shares at the end of June.

On the next page, we will continue the discussion of Axel Capital’s stock picks, focusing on the fund’s top tech bets.