Alluvial Fund Bets on Sylvamo Corporation (SLVM) Due to Its Strong Fundamentals

Group 1: Fund Performance - Alluvial Capital Management's Fund achieved a remarkable return of 41.2% in the fourth quarter of 2025, marking the best year since its inception [1] - The strong performance was driven by a supportive market environment and concentrated gains in a select group of companies within the AI value chain [1] Group 2: Sylvamo Corporation Overview - Sylvamo Corporation (NYSE:SLVM) is a paper manufacturing company specializing in cutsize, offset paper, and uncoated freesheet used in printing and publishing [2] - As of March 11, 2026, Sylvamo's stock closed at $43.49 per share, with a one-month return of -20.55% and a 52-week loss of 31.66% [2] - The company has a market capitalization of $1.718 billion [2] Group 3: Investment Insights on Sylvamo Corporation - Alluvial Capital Management purchased shares of Sylvamo Corporation, viewing it as a fundamentally sound company facing short-term challenges [3] - The company is experiencing difficulties due to the expiration of a long-term supply agreement with its former parent, International Paper, and declining paper prices amid poor demand in Europe [3] - Sylvamo is investing in its Eastover and Sumter mills in South Carolina to replace lost supply, aiming to increase capacity by 60,000 short tons annually [3] - The investment program is expected to yield a 30%+ internal rate of return, with projections of returning to $300 million in annual free cash flow by 2027 and beyond [3]