Garrett Motion (GTX) Had a Remarkable 2025. Here’s Why

Core Insights - Alluvial Capital Management reported a remarkable fourth-quarter performance for 2025, achieving a return of 41.2%, marking the best year since the fund's inception, driven by a favorable market environment and concentrated gains in a select group of companies within the AI value chain [1] Company Overview - Garrett Motion Inc. (NASDAQ:GTX) specializes in designing and manufacturing engineered turbocharging and high-speed electric motor technologies for OEMs, distributors, and industrial sectors [2] - As of March 11, 2026, Garrett Motion's stock closed at $18.11 per share, with a one-month return of -12.09% and a significant 52-week gain of 108.64%. The company's market capitalization stands at $3.46 billion [2] Investment Highlights - In 2025, Garrett Motion executed a share repurchase of 9% of its outstanding shares, initiated a dividend, and committed to returning 75% of its free cash flow to shareholders, which contributed to a doubling of its share price [3] - The company is expected to continue generating substantial free cash flow while aggressively reducing its share count. The previous share overhang has diminished significantly, with hedge fund ownership dropping from nearly 80% to less than 10% by year-end 2025, allowing for broader ownership opportunities [3] - The market's perception of Garrett Motion's long-term prospects has improved, with the transition to electric vehicles anticipated to take longer than previously expected, which may benefit the company [3] Hedge Fund Interest - Garrett Motion is not among the top 40 most popular stocks among hedge funds heading into 2026, with 43 hedge fund portfolios holding the stock at the end of Q4 2025, an increase from 37 in the previous quarter [4]