Why One Fund Cut $80 Million in Chart Industries Stock Ahead of Baker Hughes Buyout

San Francisco-based investment firm No Street reduced its stake in Chart Industries (NYSE:GTLS) by 565,000 shares in the third quarter, a move that reflected an estimated $79.7 million position decrease.

What Happened

No Street GP LP reported a significant reduction in its position in Chart Industries (NYSE:GTLS), according to a filing submitted to the U.S. Securities and Exchange Commission on Friday. The fund sold 565,000 shares during the quarter, bringing its total holding to 375,000 shares worth $75.1 million at quarter’s end. The position accounted for approximately 11.4% of AUM last quarter.

What Else to Know

Top holdings after the filing:

• NASDAQ:APP: $147.3 million (9.8% of AUM)
• NYSE:CVNA: $111.5 million (7.4% of AUM)
• NYSE:UBER: $107.8 million (7.2% of AUM)
• NASDAQ:WIX: $97.7 million (6.5% of AUM)
• NASDAQ:COOP: $94.9 million (6.3% of AUM)

As of Friday, Chart Industries shares were priced at $203.54, up 20% over the past year and outperforming the S&P 500 by 5 percentage points in the same period.

Company Overview

Company Snapshot

Chart Industries, Inc. is a leading global provider of highly engineered cryogenic equipment and process technologies, with a strong presence in the energy transition and industrial gas markets. The company's broad portfolio and expertise in cryogenic applications position it to capitalize on growth opportunities in LNG, hydrogen, and carbon capture. Its scale, diversified product offering, and focus on mission-critical solutions provide a competitive edge in serving both established and emerging end-markets. It serves a diverse customer base spanning industrial gas producers, energy companies, power generation, aerospace, food and beverage, and specialty end-markets globally.

Foolish Take

For long-term investors, the noteworthy part of No Street GP’s reduction in Chart Industries isn’t the size of the sale—it’s the shift in opportunity cost. In a portfolio built around fast-moving growth names like AppLovin, Carvana, and Uber, holding a stock already slated to be acquired for $210 per share in mid-2026 leaves little room for alpha. Once a deal premium is set, the stock starts trading more like a slow-moving arbitrage position than a high-conviction growth idea.

Operationally, Chart is performing well: Third-quarter orders hit a record $1.7 billion, up 43.9% year over year, and adjusted operating income reached $251.5 million for a strong 22.9% margin. Free cash flow was $94.7 million, and demand continues to build a $6 billion backlog. But GAAP results were messy, weighed down by a $266 million termination fee tied to previously terminated merger talks with Flowserve.

Ultimately, with the Baker Hughes acquisition pending, Chart stock’s upside is effectively capped (unless another deal falls through, which wouldn't be good). Investors may find better long-term risk-reward in companies not bound by a deal timeline and with more room for fundamental re-rating.

Glossary

Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Reportable assets: Assets that a fund must disclose in regulatory filings, typically above a certain threshold.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Forward P/E: Price-to-earnings ratio using projected future earnings, indicating how much investors pay per expected dollar of earnings.
Position: The amount of a particular security or asset held by an investor or fund.
Top holdings: The largest individual investments within a fund’s portfolio, usually ranked by market value.
Engineered equipment: Specialized machinery or devices designed for specific industrial applications, often requiring custom design or advanced technology.
Cryogenic: Relating to the production or use of very low temperatures, often for storing or transporting gases in liquid form.
Aftermarket services: Support and services provided after the initial sale of equipment, such as maintenance, repairs, or spare parts.
Capital equipment: Large, durable assets used in production or service delivery, typically with a long useful life.
Business segments: Distinct divisions within a company, each focused on specific products, services, or markets.
End-markets: The final industries or customer groups that purchase and use a company’s products or services.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chart Industries, Uber Technologies, and Wix.com. The Motley Fool has a disclosure policy.