Hotchkis & Wiley Fund: Olin Corporation (OLN) stock price decline reflects easing Middle East tensions, but a tightening chlor-alkali market is expected to drive its recovery.
Hotchkis & Wiley Mid-Cap Value Fund noted in its Q2 2026 investor letter that Olin Corporation (NYSE:OLN) is currently underperforming due to commodity prices and demand being below normal levels. The fund believes that the tightening supply and demand in the North American chlor-alkali market over the next five years could drive a recovery in Olin's prices and sales. As the "swing producer" in the region, Olin is expected to achieve excess returns. Furthermore, shareholder-friendly capital allocation and a commitment to an investment-grade balance sheet also strengthen this investment thesis. The fund also mentioned that the decline in Olin's stock price reflects the easing tensions in the Middle East, which will lead to a relaxation of near-term commodity chemical supply and demand dynamics. As of August 3, Olin's stock price was $18.62, down 10.22% over the past month.
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