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Activist Investor Polishes Up Alcoa

Summary

It is about that time: time to buy Alcoa.

The split is ever closer, yet the market continues to misunderstand its business.

Activist investor Elliott Management still owns 6% and has helped overhaul the board.

Elliott Management is one of the most active activist investors in the market these days. While tech is their bread-and-butter, they've found value in the commodity space. Namely, Alcoa (NYSE:AA), which they started targeting earlier this year.

The activist hedge fund owns 6% of the company and helped get three new board members installed this year and has been a big supporter of the split. Again, I've talked about Alcoa in the past and remain a shareholder, with the thesis being that the market simply misunderstands the company, choosing to value it based on the broad commodity price slump. However, Alcoa has a very interesting manufacturing business that get overshadowed.

Still A Metal Company?

Shares are up just over 10% since I last looked at the metas company. At the time the catalyst was the upcoming split of the company. Shares are down more than...


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