Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. It appears that the market continues to rise on news of new tariff deals. In the quarter, the Fund was up 8.5% in USD terms, 3.1% in AUD terms, but down 0.1% in EUR terms. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Conventum – Alluvium Global Fund highlighted stocks such as LyondellBasell Industries N.V. (NYSE:LYB). Headquartered in Houston, Texas, LyondellBasell Industries N.V. (NYSE:LYB) is a chemical company. The one-month return of LyondellBasell Industries N.V. (NYSE:LYB) was 5.48%, and its shares lost 42.91% of their value over the last 52 weeks. On August 29, 2025, LyondellBasell Industries N.V. (NYSE:LYB) stock closed at $56.35 per share, with a market capitalization of $18.125 billion.
Conventum – Alluvium Global Fund stated the following regarding LyondellBasell Industries N.V. (NYSE:LYB) in its second quarter 2025 investor letter:
“LyondellBasell Industries N.V. (NYSE:LYB) (down 15.7%) continues to struggle in the tough plastics market. In March management announced the shutdown of its Propylene Oxide Styrene and Monomer operations at Maasvlakte (the Netherlands), incurring a USD 117m cost to rid itself of a loss making operation. Similarly, in the June quarter it announced the “sale” of four European assets. It is not really a sale. It involves contributing funds to the assets in return for an earnout, and getting rid of liabilities associated with them. By doing so, LyondellBasell is absolving itself of future capital spending requirements (which are somewhat unknowable), resulting in better cash conversion and higher margins (by around 3% at the EBITDA level). We like it! Some assets are better held in private entities. And it is a preferable option to the alternative – shutting them down. Although the net impact of these deals is undoubtedly positive to earnings and cash flow, we remain conservative and have not factored this into our valuation. Amongst the tariff turmoil, LyondellBasell was heavily sold off. It looked too cheap to us, (trading at a 20% discount to our valuation) and we bought more to end the quarter with a 4.5% position.”
LyondellBasell Industries N.V. (NYSE:LYB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held LyondellBasell Industries N.V. (NYSE:LYB) at the end of the second quarter, which was 38 in the previous quarter. While we acknowledge the potential of LyondellBasell Industries N.V. (NYSE:LYB) 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.
