(Bloomberg) — David Einhorn said he’s betting on European essential chemicals company Solvay SA.
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The Greenlight Capital founder made the comments Wednesday at the Sohn Investment Conference in New York.
Solvay’s American depositary receipts surged 13% to $3.10 apiece at 2:19 p.m. in New York.
The company, a large producer of soda ash — an inorganic compound used for making flat glass — is adding 7% to its capacity by expanding in Wyoming in coming years, Einhorn said.
Solvay also sells peroxides, solvents and silica used in tires, toothpaste and animal feed. Einhorn said he believes Solvay has above-average management for a European chemicals company.
“We think this boring essential-chemicals business will generate attractive, risk-adjusted returns for investors,” he said.
Einhorn, 55, also said it’s a great time to be a value investor, as competition is so small that the opportunities to find companies “with cash-on-cash returns are more abundant than at any time in my career other than at the bottom of a bear market.”
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