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

Baron Funds, an asset management firm, published its “Baron Small Cap Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. Baron Small Cap Fund (the “Fund”) was down 18.60% (Institutional Shares) in the second quarter. The Fund modestly outperformed the Russell 2000 Growth Index, which was down 19.25% for the period, but lagged the S&P 500 Index, which was down 16.10%. Year-to-date, the Fund is down 31.36%, which trailed the Russell 2000 Growth Index and the S&P 500 Index, which were down 29.45% and 19.96%, respectively. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Small Cap 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 global manufacturer with a $7.3 billion market capitalization. Chart Industries, Inc. (NASDAQ:GTLS) delivered a 25.89% return since the beginning of the year, while its 12-month returns are up by 4.37%. The stock closed at $200.48 per share on September 09, 2022.

Here is what Baron Small Cap Fund has to say about Chart Industries, Inc. (NASDAQ:GTLS) in its Q2 2022 investor letter:

Chart Industries, Inc. is a manufacturer of cryogenic equipment for LNG and other industrial gases, most notably hydrogen, which allows Chart to sell picks and shovels to the quickly growing LNG and hydrogen industries. The stock has performed well as the company is positioned to benefit from increasing demand for LNG and clean energy solutions driven by the supply consequences of the Russian-Ukrainian conflict. The company also received several large LNG orders earlier than expected, including the first large-scale project using a proprietary liquefaction process called IPSMR.

We initiated a position in Chart Industries, Inc., a leading global manufacturer of highly engineered cryogenic equipment used in liquid gas supply chains supporting industrial gas, natural gas, liquified natural gas (LNG), and emerging clean energy end markets.

Chart’s primary products are heat exchangers and cryogenic storage vessels supported by upfront engineering, service, and repair. CEO Jill Evanko took over a more cyclical fossil-fuel-focused company in mid-2018 and revamped the business by leveraging strong market positioning in key cryogenic technology and deploying strategic capital to create a lean picks and shovels supplier serving not only legacy Industrial gas and LNG customers, but also Specialty Markets such as hydrogen, carbon capture, water treatment, and food & beverage…” (Click here to see the full text)

Industrial

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 26 hedge fund portfolios at the end of the second quarter of 2022, compared to 29 funds in the previous quarter. Chart Industries, Inc. (NASDAQ:GTLS) delivered a 12.94% return in the past 3 months.

In July 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 Q2 page.

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