Is Chart Industries (GTLS) a Smart Long-Term Buy?

Baron Funds, an asset management firm, published its “Baron Discovery Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. In what turned out to be a challenging first quarter, Baron Discovery Fund (the “Fund”) decreased 16.30% (Institutional Shares), which was 3.67% below the Russell 2000 Growth Index (the “Benchmark”). Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Discovery Fund mentioned Chart Industries, Inc. (NASDAQ:GTLS) and explained its insights for the company. Founded in 1992, Chart Industries, Inc. (NASDAQ:GTLS) is a Ball Ground, Georgia-based standard and custom-engineered products manufacturer with a $6.6 billion market capitalization. Chart Industries, Inc. (NASDAQ:GTLS) delivered a 4.04% return since the beginning of the year, while its 12-month returns are up by 18.19%. The stock closed at $165.93 per share on June 15, 2022.

Here is what Baron Discovery Fund has to say about Chart Industries, Inc. (NASDAQ:GTLS) in its Q1 2022 investor letter:

“We initiated a position in Chart Industries, Inc. (NASDAQ:GTLS), a leader in cryogenic technology and equipment manufacturing for gas-to-liquid processing and storage. Its primary products are heat exchanging and cryogenic transportation and storage equipment serving the industrial gas, natural gas, and liquified natural gas (LNG) markets. Several recent acquisitions and a new internal commercial focus have expanded its revenue opportunities into high-growth markets such as hydrogen, carbon capture, water treatment, and others. Chart has strong competitive positioning in its core product categories and is well positioned to benefit as the world moves towards decarbonization and clean energy. While Chart’s core business supplying equipment to industrial gas majors will continue to be a highly profitable business growing above global GDP, emerging applications in clean energy and other specialty products will drive overall revenue and profit growth well above that (especially because these emerging applications generally carry higher margins). Finally, the war in Ukraine is accelerating the European Union’s plans to decrease its dependence on Russian natural gas while increasing the importation of liquefied natural gas. Successfully achieving this transition will require a multi-year investment in new LNG infrastructure, which should benefit Chart in future years.”

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Our calculations show that Chart Industries, Inc. (NASDAQ:GTLS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Chart Industries, Inc. (NASDAQ:GTLS) was in 29 hedge fund portfolios at the end of the first quarter of 2022, compared to 25 funds in the previous quarter. Chart Industries, Inc. (NASDAQ:GTLS) delivered a 1.93% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on Chart Industries, Inc. (NASDAQ:GTLS) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.