Home » Business » Belgian Chemical Company Solvay Soars 9% After David Einhorn’s Tip: What You Need to Know

Belgian Chemical Company Solvay Soars 9% After David Einhorn’s Tip: What You Need to Know

Scholarship

© AFP

The share of the Belgian chemical company Solvay rose by 9 percent after a compliment from the well-known American investor David Einhorn.

On a flat Brussels stock exchange day, one share stood head and shoulders above the rest on Thursday: the chemical company Solvay shot up to 9 percent higher to 29.19 euros shortly after opening during busy trading.

The reason can be summed up in two words: David Einhorn. The founder of the American hedge fund Greenlight Capital was passing through the Sohn Investment Conference on Wednesday, a kind of ‘day of tips’ since 1995 for everyone who means something on Wall Street.

According to the Bloomberg news agency, one of Einhorn’s buying tips was the Belgian Solvay, a specialist in basic chemicals that was split off from its faster-growing sister company Syensqo in December. “This boring chemical company guarantees a solid return,” says Einhorn. The hedge fund manager refers, among other things, to Solvay’s significant investments in expanding capacity in soda ash – an essential building block for window glass – in the US state of Wyoming.

Einhorn is a famous and infamous name in the financial world. He is especially infamous because during the financial crisis he was one of the first to bet on a fall in the share price of Lehman Brothers, a bank that would eventually go bankrupt. He made millions of dollars from it.

David Einhorn. — © reuters

The investor guru also gave his name to the so-called Einhorn effect: when the investor guru announces that he is betting on a company’s price increase or decrease, many investors follow his advice.

Einhorn also managed to achieve very high returns for years with his hedge fund Greenlight Capital, but from 2015 those golden times were over. Earlier this year, the hedge fund manager was complaining about the rise of passive investors. “The market is fundamentally broken,” he said. “Passive investors have no opinion about value. They just assume that everyone else will have done their homework.”

2024-04-04 08:57:23
#Investor #guru #Solvay #share #adrenaline #shot

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