Voya MI Dynamic Small Cap Fund on Tronox Holdings plc
Thesis
Tronox is an overweight holding and produces titanium dioxide pigment. The position was primarily held for portfolio risk-management reasons rather than because of a detailed fundamental thesis disclosed in the commentary. The quarter exposed material operating risks as softer earnings guidance, leverage concerns, and competitive pressure from elevated Chinese exports weighed on the shares.
“The stock was pressured by softer earnings guidance, high leverage concerns, and competitive headwinds including elevated Chinese export volumes.”
Key risks
- Softer earnings guidance.
- High leverage.
- Competitive headwinds from elevated Chinese export volumes.