Orion S.A. (OEC) Fell on Ongoing Freight Recession

Diamond Hill Capital, an investment management company, released its “Small Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their rally in the third quarter, with small-cap stocks gaining over 12% as measured by the Russell 2000 Index. However, the portfolio trailed the Russell 2000 Index in the quarter, returning 7.93% (net of fees). The relative underperformance was mainly due to the rally being driven by sectors that the portfolio typically does not own. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Diamond Hill Capital Small Cap Strategy highlighted stocks such as Orion S.A. (NYSE:OEC), in the third quarter 2024 investor letter. Orion S.A. (NYSE:OEC) manufactures and distributes carbon black products. The one-month return of Orion S.A. (NYSE:OEC) was -15.55%, and its shares lost 74.30% of their value over the last 52 weeks. On November 24, 2025, Orion S.A. (NYSE:OEC) stock closed at $4.67 per share, with a market capitalization of $262.219 million.

Diamond Hill Capital Small Cap Strategy stated the following regarding Orion S.A. (NYSE:OEC) in its third quarter 2025 investor letter:

"Other bottom contributors in Q3 included Triumph Financial, Orion S.A. (NYSE:OEC) and Ryman Hospitality Properties. Carbon black manufacturer Orion likewise faces pressures related to the ongoing freight recession and a market in which strained consumers are choosing cheaper imported tires."

Orion S.A. (NYSE:OEC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 32 hedge fund portfolios held Orion S.A. (NYSE:OEC) at the end of the second quarter, compared to 33 in the previous quarter. While we acknowledge the potential of Orion S.A. (NYSE:OEC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.