What's Behind This $88 Million Bet on an Industrial Play: Chart Industries in Focus

A São Paulo-based global macro fund just made a striking move in the market. Absolute Gestao de Investimentos accumulated 440,746 shares of Chart Industries (NYSE: GTLS) during Q3, translating to an $88 million position that now ranks as the fund’s third-largest holding at 11% of its reportable assets. The timing and conviction behind this bet deserves closer examination.

The Math Behind an 11% Position

For context, dedicating roughly 11% of reported U.S. equity capital to a single industrial stock signals serious conviction. The stake was worth $88.22 million as of September 30, according to SEC filings released November 13. When a specialized fund concentrates this much firepower in one name, it typically reflects confidence in underlying fundamentals rather than chasing momentum.

It’s also worth noting that Baker Hughes has announced plans to acquire Chart at $210 per share—so there’s a slight premium sitting on the table if the deal closes as expected in 2025. Whether this purchase happened before or after that acquisition announcement remains unclear, but the math is there for potential upside.

The Operating Story Is Compelling

What separates this from a typical speculative play is what’s actually happening inside the business. Chart Industries just reported Q3 orders that jumped nearly 44% year-over-year to a record $1.68 billion. Total backlog now exceeds $6 billion, indicating multi-year revenue visibility.

Where’s the demand coming from? LNG projects, data center expansion, hydrogen infrastructure, carbon capture initiatives, and industrial gas players are all committing capital years in advance. That’s structural demand, not cyclical noise.

Even more telling: adjusted operating margins climbed to roughly 23% despite reported GAAP losses from one-time merger and termination costs. When a company can deliver that kind of profitability while dealing with integration headwinds, it suggests significant earnings power underneath the headlines.

How This Fits the Portfolio Theme

Chart Industries operates at the intersection of energy security, electrification, and decarbonization—three mega-themes defining global infrastructure spending. That’s precisely why this position sits alongside the fund’s other top holdings: cybersecurity plays (CYBR at $92.23 million), broad emerging market exposure (EEM at $89.72 million), and regional ETFs like EWZ at $48.85 million.

The company designs and manufactures specialized equipment—cryogenic storage tanks, heat exchangers, regasification systems, and hydrogen/CO2 capture solutions. Its customer base spans industrial gas producers, energy companies, and niche sectors including aerospace, food and beverage, and water treatment. Think of it as infrastructure for the energy transition.

Where the Stock Currently Stands

As of mid-quarter, Chart shares traded around $205.85, up roughly 5% year-to-date but lagging the S&P 500’s 15% gain. Market cap sits at $9.25 billion with trailing twelve-month revenue of $4.29 billion and net income of $66.70 million.

The underperformance relative to broader equities is actually what makes this conviction-driven institutional accumulation interesting. While markets chase momentum elsewhere, this fund is positioning for a company sitting on record backlogs, expanding margins, and exposure to secular growth drivers that haven’t fully priced in yet.