Cleveland-Cliffs: A Steel Wager

by

It appears a certain fund, Turiya Advisors Asia Ltd, has developed a fondness for iron and steel. They’ve committed some $96.28 million to Cleveland-Cliffs, a sum large enough to suggest either remarkable foresight or a regrettable lack of imagination. One suspects the former, though the market, as always, remains a most unreliable narrator.

A Curious Infatuation

The acquisition, amounting to 7,250,000 shares, now constitutes nearly 15% of Turiya’s reported assets. A bold stroke, wouldn’t you agree? To place such faith in a single industry, particularly one as cyclical as steel, is a gamble worthy of a boulevardier. It suggests a conviction, or perhaps merely a desire to be seen as possessing one.

Their portfolio, prior to this indulgence, leaned heavily towards the digital realm – Alphabet and Tower Semiconductor occupying prominent positions. To add steel to this mix is…unexpected. It’s as if a connoisseur of fine wines suddenly developed a taste for gin. Not necessarily a bad thing, mind you, just…distinctive.

  • NASDAQ: GOOGL: $225.77 million (34.6% of AUM)
  • NASDAQ: TSEM: $172.85 million (26.5% of AUM)
  • NYSE: CLF: $96.28 million (14.8% of AUM)
  • NYSE: GEO: $91.00 million (13.9% of AUM)
  • NYSE: PSTG: $67.01 million (10.3% of AUM)

As of late, Cleveland-Cliffs shares were enjoying a modest ascent, up 10.4% year-over-year. A fleeting moment of optimism, perhaps, or a genuine harbinger of recovery. The market, of course, delights in ambiguity.

The Anatomy of a Steel Maker

Cleveland-Cliffs, for those unfamiliar, produces the very bones of industry – flat-rolled steel, stainless steel, and all manner of iron products. They cater to the automotive world, infrastructure projects, and various other enterprises. A solid, if somewhat unglamorous, business. They are, in essence, the unsung heroes of modernity, providing the materials that allow us to build, to travel, to indulge in our modern whims.

Their revenue, at $18.61 billion, remains substantial, though marred by a net loss of $1.48 billion. A curious paradox, wouldn’t you say? To generate such wealth, yet remain in the red. It speaks to the inherent volatility of the industry, and the ever-present challenge of managing costs. One might observe that to lose one billion dollars may be regarded as a misfortune; to lose two looks like a rather extravagant hobby.

Metric Value
Price (as of market close 2/11/26) $12.48
Market Capitalization $7.12 billion
Revenue (TTM) $18.61 billion
Net Income (TTM) ($1.48 billion)

A Calculated Risk?

Turiya anticipates steel shipments of roughly 16.5 to 17.0 million net tons in 2026, with a targeted cost reduction of $10 per ton. Laudable ambitions, certainly. But the true measure of success lies not in projections, but in execution. The market, as always, is far more interested in results than intentions.

This allocation, viewed against the backdrop of their existing holdings, suggests a belief that the cycle is nearing its nadir. A bold wager, to be sure. But then, what is life without a little risk? A perfectly balanced account, devoid of speculation, is a rather dull affair, don’t you think? One might even say it lacks…character.

Long-term investors, those with the patience of saints and the discernment of aesthetes, should focus less on quarterly fluctuations and more on the underlying fundamentals. Balance sheet strength, cost control, and the potential for margin recovery – these are the true indicators of value. And, of course, a touch of audacity never goes amiss.

Read More

2026-02-13 01:54