Aristotle Small Cap Equity Strategy Sold Tronox (TROX) due to Increased Uncertainty
In its second quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as Tronox Holdings plc (NYSE:TROX). Tronox Holdings plc (NYSE:TROX) is a vertically integrated TiO2 pigment manufacturer. The one-month return of Tronox Holdings plc (NYSE:TROX) was 3.91%, and its shares lost 62.97% of their value over the last 52 weeks. On July 23, 2025, Tronox Holdings plc (NYSE:TROX) stock closed at $5.85 per share, with a market capitalization of $927.003 million.
Aristotle Capital Small Cap Equity Strategy stated the following regarding Tronox Holdings plc (NYSE:TROX) in its second quarter 2025 investor letter:
"Tronox Holdings plc (NYSE:TROX), a leading global manufacturer of titanium dioxide (TiO2) pigment, a key ingredient in paint, plastics and a variety of other industrial applications. We believe the company is well positioned to benefit from increased production volumes and product pricing driven by improving global economic conditions. However, an increasingly uncertain economic outlook as a result of the threat of increased global tariffs pushed out the expected demand recovery combined with a cyclically driven stressed balance sheet caused us to exit the position."
A close-up look at specialized machinery grinding up titanium dioxide pigment into ultrafine particles used as a colorant in paints, coatings, plastics, and paper.
Tronox Holdings plc (NYSE:TROX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Tronox Holdings plc (NYSE:TROX) at the end of the first quarter, which was 21 in the previous quarter. While we acknowledge the potential of Tronox Holdings plc (NYSE:TROX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In previous article, we discussed Tronox Holdings plc (NYSE:TROX) and shared that J.P. Morgan analyst Jeffrey Zekauskas upgraded his ratings from Neutral to Overweight. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
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