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

In its fourth-quarter 2025 capitalist letter, Alluvial Capital Management highlighted stocks similar Sylvamo Corporation (NYSE:SLVM). Sylvamo Corporation (NYSE:SLVM) is simply a insubstantial institution that manufactures cutsize, offset paper, and pulp producing uncoated freesheet utilized successful printing and publishing. On March 11, 2026, Sylvamo Corporation (NYSE:SLVM) banal closed astatine $43.49 per share. One-month instrumentality of Sylvamo Corporation (NYSE:SLVM) was -20.55%, and its shares mislaid 31.66% implicit the past 52 weeks. Sylvamo Corporation (NYSE:SLVM) has a marketplace capitalization of $1.718 billion.

Alluvial Capital Management stated the pursuing regarding Sylvamo Corporation (NYSE:SLVM) successful its 4th fourth 2025 capitalist letter:

"In the 4th quarter, Alluvial Fund purchased shares of Sylvamo Corporation (NYSE:SLVM), a shaper of uncoated freesheet paper—think printer paper. In Sylvamo, I spot an accidental to bargain a fundamentally dependable institution facing abbreviated word headwinds. Sylvamo, spun disconnected from elephantine International Paper successful 2021, has a beardown past of profitability and escaped currency travel generation. However, 2025 and 2026 results are being weighed down by a confluence of antagonistic factors. The company’s semipermanent proviso statement with its erstwhile genitor is expiring arsenic International Paper converts a accumulation enactment from freesheet to cardboard. Paper pricing is down. And Europe, a large marketplace for Sylvamo, is experiencing mediocre demand. Difficult times. However, determination is bully crushed to judge these factors volition alleviate implicit the people of this year, mounting Sylvamo up to instrumentality to steadfast escaped currency travel generation. The institution is moving to regenerate its mislaid proviso via a large concern successful its Eastover and Sumter mills successful South Carolina. The task volition summation capableness by 60,000 abbreviated tons annually. Elsewhere successful the industry, the International Paper conversion and the closure of a Pixelle insubstantial mill successful Chillicothe, Ohio volition trim proviso and enactment insubstantial pricing. Sylvamo expects that its South Carolina concern programme volition output a 30%+ interior complaint of return, and that the institution tin instrumentality to producing $300 cardinal successful escaped currency travel annually successful 2027 and beyond.