Chart Industries Drew a New $27 Million Bet Amid Record Orders and a $210 Per Share Buyout Deal

London-based Decagon Asset Management initiated a new stake in Chart Industries (NYSE:GTLS), adding 137,732 shares valued at approximately $27.57 million during the third quarter, according to a November 14 SEC filing.

What Happened

According to a filing with the Securities and Exchange Commission dated November 14, Decagon Asset Management established a new position in Chart Industries, Inc, purchasing 137,732 shares valued at $27.57 million as of September 30. This position accounts for approximately 13.92% of the fund’s reportable U.S. equity holdings for the period.

What Else to Know

This new stake in Chart Industries comprises 13.92% of Decagon Asset Management’s 13F assets under management following the September quarter.

Top holdings after the filing:

• NASDAQ: CYBR: $36.23 million (20.7% of AUM)
• NYSE: GTLS: $27.57 million (15.7% of AUM)
• NYSE: AL: $22.25 million (12.7% of AUM)
• NASDAQ: MCGA: $11.04 million (6.3% of AUM)
• NYSE: ELME: $8.67 million (5.0% of AUM)

As of Wednesday, shares of Chart Industries were priced at $205.96, up about 7% over the past year and underperforming the S&P 500, which is up about 15%.

Company Overview

Company Snapshot

• Chart Industries manufactures engineered equipment for the energy and industrial gas sectors, including cryogenic tanks, heat exchangers, and process technology for LNG, hydrogen, CO2 capture, and other specialty applications.
• The company generates revenue through equipment sales, aftermarket services, leasing, and repair and maintenance solutions, serving both project-based and recurring service needs.
• Primary customers include industrial gas producers, energy companies, and participants in specialty end-markets such as aerospace, food and beverage, and water treatment.

Chart Industries, Inc. is a large-scale manufacturer specializing in highly engineered equipment for critical applications in energy, industrial gas, and specialty markets. The company leverages a diversified product portfolio and global service network to address complex customer needs in growing sectors such as LNG, hydrogen, and carbon capture. Its broad exposure to both equipment and aftermarket services provides stability and growth opportunities across multiple industrial end markets.

Foolish Take

What matters here isn’t short-term stock performance, which has lagged the S&P 500, but the asymmetric setup Chart Industries now presents for long-term capital. The timing of the position is worth flagging: The Baker Hughes acquisition was announced in late July, and because this stake was disclosed for the third quarter, it’s not clear whether shares were accumulated before or after that deal became public. Either way, the fundamentals that make the trade compelling predate the transaction.

Chart just posted third-quarter orders of $1.68 billion, up roughly 44% year over year, pushing backlog to about $6.05 billion, the highest level in company history. Meanwhile, reported earnings were clouded by transaction-related costs, but adjusted operating income reached $251.5 million, with adjusted EBITDA of $277.1 million, or roughly 25% of revenue. That margin profile highlights how profitable the core business has become, even before any deal synergies.

Zooming out, this fund’s portfolio skews toward capital-intensive infrastructure and industrial assets rather than high-multiple growth. In that context, Chart offers a clean risk-reward profile: strong standalone demand paired with a clearly defined $210-per-share cash outcome if the Baker Hughes deal closes as expected.

Glossary

Stake: The ownership interest or investment a fund or individual holds in a particular company.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm on behalf of clients.
13F: A quarterly report filed by institutional investment managers to disclose their U.S. equity holdings to the SEC.
Equity exposure: The proportion of a portfolio invested in stocks or stock-related assets.
Aftermarket services: Services provided after the sale of equipment, such as maintenance, repairs, and support.
Cryogenic tanks: Specialized containers designed to store and transport extremely cold liquids, such as liquefied natural gas (LNG) or industrial gases.
Heat exchangers: Devices that transfer heat between two or more fluids without mixing them, commonly used in industrial processes.
Process technology: Equipment and methods used to transform raw materials into finished products in industrial settings.
LNG (Liquefied Natural Gas): Natural gas cooled to a liquid state for easier storage and transportation.
Carbon capture (CO2 capture): Technologies that capture carbon dioxide emissions from industrial processes to reduce environmental impact.
End-markets: The final industries or sectors where a company's products or services are used.
TTM: The 12-month period ending with the most recent quarterly report.

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