Should You Hold Huntsman Corp. (HUN)?

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Hedged Equity Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equity markets rebounded in the quarter, rising 23% from intra-period lows to close at record highs. The fund gained 4.86% (net) in the quarter compared to the S&P 500 Index’s 10.94% return and its secondary benchmark, the CBOE S&P 500 Buy/Write Index’s 1.90% return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Meridian Hedged Equity Fund highlighted stocks such as Huntsman Corporation (NYSE:HUN). Huntsman Corporation (NYSE:HUN) is a global manufacturer and distributor of diversified organic chemical products. The one-month return of Huntsman Corporation (NYSE:HUN) was 2.73%, and its shares lost 49.93% of their value over the last 52 weeks. On August 25, 2025, Huntsman Corporation (NYSE:HUN) stock closed at $10.93 per share, with a market capitalization of $1.899 billion.

Meridian Hedged Equity Fund stated the following regarding Huntsman Corporation (NYSE:HUN) in its second quarter 2025 investor letter:

“Huntsman Corporation (NYSE:HUN) is a global chemicals manufacturer with leadership in MDI (used in insulation and foams), with high exposure to the construction and automotive markets. Following years of restructuring and portfolio optimization, Huntsman now has a more focused, higher-margin business mix that should deliver strong earnings growth when end-market demand, which has been depressed, normalizes. The stock lagged due to weaker-than-expected earnings guidance and pricing pressure. Tariff impacts on Chinese MDI imports failed to lift U.S. prices as anticipated, instead triggering a flood of volume into Asian markets and depressing global pricing. This contributed to prolonged earnings weakness and forced a reset of the recovery timeline. Trading at trough multiples with the stock near multi-year lows, we see upside as interest rates moderate and construction activity rebounds. Until then, we take some comfort in the company’s commitment to maintaining its dividend, which provides income support during the downturn.”

Why Huntsman Corporation (HUN) Went Down On Friday?

Workers in a chemical plant, creating the state-of-the-art organic chemical products.

Huntsman Corporation (NYSE:HUN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Huntsman Corporation (NYSE:HUN) at the end of the second quarter, which was 38 in the previous quarter. While we acknowledge the risk and potential of Huntsman Corporation (NYSE:HUN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Huntsman Corporation (NYSE:HUN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Huntsman Corporation (NYSE:HUN) and shared the list of best basic materials stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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