Why a $3.6 Million Bet on Louisiana-Pacific Looks Timed for a Housing Reset
Key Points
New York City-based Elwood Capital Partners added 40,000 shares in LPX during the third quarter.
The move contributed to a net position change of $3.55 million.
This was a new position for Elwood, which reported holding no LPX shares in the previous quarter.
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New York City-based Elwood Capital Partners initiated a new position in Louisiana-Pacific Corporation (NYSE:LPX), adding 40,000 shares worth approximately $3.55 million, according to a November 13 SEC filing.
What Happened
According to a Securities and Exchange Commission (SEC) filing dated November 13, Elwood Capital Partners LP disclosed a new stake in Louisiana-Pacific Corporation (NYSE:LPX), acquiring 40,000 shares with a market value of $3.55 million as of the September quarter-end. This move brought the fund’s total reportable U.S. equity positions to 19, with AUM of $163.77 million.
What Else to Know
This new position represents 2.17% of the fund’s 13F AUM as of September 30.
Top holdings after the filing:
- NASDAQ:AMZN: $13.80 million (12.6% of AUM)
- NASDAQ:MSFT: $13.07 million (12.0% of AUM)
- NYSE:TSM: $12.57 million (11.5% of AUM)
- NYSE:UNH: $12.10 million (11.1% of AUM)
- NYSE:PLNT: $7.27 million (6.6% of AUM)
As of Wednesday, LPX shares were priced at $82.55, down 21% over the past year and well underperforming the S&P 500, which is up about 15% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $2.82 billion |
| Net Income (TTM) | $216.00 million |
| Dividend Yield | 1.4% |
| Price (as of Wednesday) | $82.55 |
Company Snapshot
- Louisiana-Pacific Corporation manufactures and markets building products, including engineered wood siding, oriented strand board, and structural panel products across four segments: Siding, OSB, Engineered Wood Products, and South America.
- The company generates revenue primarily through the production and sale of value-added wood-based building materials to construction, repair, remodeling, and outdoor structure markets.
- It serves retailers, wholesalers, homebuilders, and industrial customers in North America, South America, Asia, Australia, and Europe.
Louisiana-Pacific Corporation is a leading manufacturer of engineered wood products, with a diversified portfolio serving new home construction, repair, and remodeling markets.
Foolish Take
Louisiana-Pacific fits a somewhat uncomfortable profile right now. Earnings have been crushed by a collapse in oriented strand board pricing, dragging consolidated results lower even as the company’s higher-margin siding business quietly keeps growing.
To illustrate, take the third quarter, for example. Siding revenue rose 5% year over year to $443 million, driven entirely by pricing, while oriented strand board (OSB) revenue fell sharply as commodity prices rolled over. Adjusted EBITDA dropped sharply to $82 million from $153 million a year earlier; however, management reaffirmed full-year siding EBITDA guidance of roughly $430 million with margins near 26%. That distinction matters. Siding is becoming the earnings anchor, not OSB.
The balance sheet remains sturdy with $1.1 billion in liquidity and positive operating cash flow of $89 million in the quarter, even after $84 million in capital spending. Against a portfolio dominated by mega-cap tech and defensive healthcare names, this looks like a selective cyclical add rather than a reckless swing. Ultimately, this looks like a bet that housing demand stabilizes before OSB prices rebound, and that Louisiana-Pacific’s shift toward value-added products will matter more than near-term noise.
Glossary
13F reportable assets under management (AUM): Total value of securities a fund must disclose quarterly to the SEC on Form 13F.
New position: The first time a fund acquires shares in a particular company, establishing an initial investment stake.
Top holdings: The largest investments in a fund's portfolio, usually ranked by market value.
Stake: The amount of ownership a fund or investor holds in a company, typically measured in shares or value.
Value-added: Products enhanced with features or processing that increase their worth compared to basic or raw materials.
Engineered wood: Wood products manufactured by binding or fixing wood strands, particles, or veneers with adhesives to create structural materials.
Oriented strand board (OSB): An engineered wood panel made from compressed wood strands arranged in specific orientations for strength.
Dividend yield: Annual dividend income expressed as a percentage of the current share price.
Fund: A pooled investment vehicle managed by professionals, investing in a range of assets on behalf of investors.
Quarter end: The last day of a company's fiscal quarter, used for financial reporting and analysis.
Remodeling market: The segment of the construction industry focused on renovating or improving existing buildings.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, Planet Fitness, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends UnitedHealth Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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