Tesla Motors Inc. (TSLA)’s Growth Is Pushing Hedge Funds Towards Lithium Stocks

#2. FMC Corp (NYSE:FMC)

– Hedge Funds with Long Positions (as of June 30): 37

– Value of Hedge Funds’ Holdings (as of June 30): $1.09 Billion

There were 37 asset managers tracked by Insider Monkey with equity investments in FMC Corp (NYSE:FMC) at the end of the June quarter, as compared to a mere 22 recorded at the end of the previous quarter. The overall value of those equity investments spiked by 28% quarter-over-quarter to $1.09 billion, partially due to a 15% gain in the value of FMC shares. The 37 asset managers amassed around 18% of the company’s total number of outstanding shares. FMC manufactures lithium for use in a broad array of products used in energy storage, specialty polymers and chemical synthesis application through its FMC Lithium segment. In May, FMC announced plans to triple its production of lithium hydroxide to 30,000 metric tons by 2019 after signing a new supply agreement with a major manufacturer of electric cars. FMC is one of the four largest producers of lithium, three of which are discussed in this article, that collectively control approximately 90% of the market. Shares of FMC are up 24% thus far in 2016. David Fear’s Thunderbird Partners was the owner of 2.68 million shares of FMC Corp (NYSE:FMC) at the end of June.

#1. Albemarle Corporation (NYSE:ALB)

– Hedge Funds with Long Positions (as of June 30): 40

– Value of Hedge Funds’ Holdings (as of June 30): $1.06 Billion

The number of smart money investors with long positions in Albemarle Corporation (NYSE:ALB) increased to 40 from 28 during the June quarter, while the overall value of those positions rose by an impressive 80% quarter-over-quarter to $1.06 billion. The increase was partly driven by a 24% gain in the value of Albemarle shares. The 40 hedge fund firms invested in Albemarle accumulated around 12% of the company’s common stock. The leading global developer, manufacturer and marketer of highly-engineered specialty chemicals reported net sales from lithium and advanced materials of $233.35 million for the three months that ended June 30, up from $213.00 million posted for the same period of the prior year. Albemarle’s management team anticipates that the demand for lithium will keep growing due to new applications for lithium power, as well as due to the accelerating use of plug-in hybrid electric vehicles and battery electric vehicles. Albemarle has seen its market cap gain 44% since the start of the year. Iridian Asset Management, founded by David Cohen and Harold Levy, owned 2.50 million shares of Albemarle Corporation (NYSE:ALB) on June 30.

Disclosure: None