Kawa Capital Management Exits Gerdau S.A. with $6.49 Million Sale
Gerdau S.A. shares rose 5.77% and reached a 52-week high amid positive market conditions.
Kawa Capital Management sold all 2,094,404 shares of Gerdau S.A. for approximately $6.49 million, reducing its exposure from 11.8% to 0%. This strategic shift indicates a focus on risk management, even as Gerdau's shares have increased by 47% over the past year, significantly outperforming the S&P 500's 14% gain. The company's latest earnings report highlighted steady cash generation and ongoing capital returns, including dividends and buybacks, despite a normalization in steel markets, presenting a positive outlook for long-term investors.
The exit by Kawa Capital may reflect a broader trend of portfolio restructuring among investors, but Gerdau's strong performance and financial health suggest it remains a solid investment choice.
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FMR LLC Reduces Stake in Brazil's Gerdau to 4.39% of Preferred Shares, According to Filing
- Company Stake Reduction: Brazil's Gerdaus has reduced its stake in the company to 4.39% of the preferred shares.
- Filing Announcement: The reduction in stake was disclosed through a formal filing.
Kawa Capital Management Fully Exits Gerdau S.A. with $6.49 Million Transaction
- Full Liquidation: Kawa Capital Management sold all 2,094,404 shares of Gerdau S.A. in Q4 2023 for approximately $6.49 million, reducing its exposure from 11.8% to 0%, indicating a strategic shift in risk management.
- Portfolio Shift: Following the liquidation, Kawa's top holdings now include BDN ($15.73 million, 36.4%), ONL ($12.54 million, 29.0%), and others, reflecting a pivot towards real estate and diversified materials companies.
- Stock Performance: As of January 20, 2023, Gerdau's shares were priced at $4.16, up 47% over the past year, significantly outperforming the S&P 500's 14% gain, showcasing the company's strong market position and pricing discipline.
- Investor Outlook: Gerdau's latest earnings report highlighted steady cash generation and ongoing capital returns, including dividends and buybacks, despite a normalization in steel markets, presenting a positive outlook for long-term investors focused on durability.
Kawa Capital Fully Exits Gerdau S.A. Position with $6.49 Million Transaction
- Position Liquidation: Kawa Capital sold 2,094,404 shares of Gerdau S.A. in Q4, with an estimated transaction value of $6.49 million, marking a reduction of its exposure from 11.8% to 0%, indicating a focus on risk management.
- Market Performance: As of January 20, Gerdau S.A. shares were priced at $4.16, reflecting a 47% increase over the past year, significantly outperforming the S&P 500's 14% gain during the same period, showcasing the company's strong performance in the steel market.
- Financial Health: In its latest earnings report, Gerdau highlighted steady cash generation and ongoing capital returns, including dividends and buybacks, despite the normalization of steel markets, demonstrating financial flexibility and a robust balance sheet.
- Investment Strategy Shift: The complete exit from Gerdau S.A. suggests that Kawa Capital may be restructuring its portfolio and managing risk after a significant stock price rally, shifting focus towards more diversified real estate and materials assets.
Benzinga Unveils Top Ten International Value Stocks for 2026
- Global Value Investment Opportunities: The Benzinga Value Ranking system identifies the top ten non-U.S. value stocks by integrating multiple valuation metrics, assisting investors in finding margin of safety and upside potential in a mispriced market.
- Valuation Dispersion Phenomenon: Outside the U.S., many profitable and asset-rich companies are overlooked, trading at single-digit earnings multiples, highlighting extreme valuation dispersion that presents potential investment opportunities.
- Risk Management Advantage: By focusing on the top decile of the Benzinga Value Ranking, investors can access the cheapest segment of the global market, thereby reducing risk as these stocks typically come with lower expectations.
- Long-Term Growth Potential: As we approach 2026, the Benzinga Value Ranking provides a systematic approach to uncover overlooked global stocks, which, while not guaranteed winners, offer limited downside risk and significant upside potential.
5 Value Stocks Worth Considering Amid Market Instability
Market Sentiment: Despite markets nearing all-time highs, investor sentiment has shifted from exuberance to cautious optimism, influenced by weak employment numbers and potential economic hardships from a federal government shutdown.
Value Stocks Recommendation: Investors with significant unrealized gains are advised to consider reallocating to value stocks to minimize losses and generate income through dividends, especially in light of potential market corrections.
Highlighted Value Stocks: Five value stocks are recommended for portfolio protection, including Sasol Ltd., Gerdau SA, Ecopetrol SA, Seaboard Corp., and Fluor Corp., each with strong fundamentals and favorable Benzinga Edge Value scores.
Technical Analysis Insights: Each stock shows signs of bullish momentum and technical indicators, such as Golden Crosses and moving averages, suggesting potential for price appreciation despite recent volatility.
GERDAU S.A. - COMPREHENSIVE DATA REPORT
3Q25 Financial Performance: Gerdau S.A. reported an adjusted EBITDA of R$2.7 billion for 3Q25, a 7% increase from 2Q25, with North America contributing 65% to the consolidated EBITDA.
Investment and CAPEX Guidance: The company invested R$1.7 billion in 3Q25, focusing 60% on asset competitiveness, and announced a 2026 CAPEX guidance of R$4.7 billion, which is 22% lower than the 2025 forecast.
Dividend and Share Buyback: A dividend of R$0.28 per share was declared, totaling R$555.2 million, and approximately 88% of the 2025 Share Buyback Program has been completed, with R$902 million invested in repurchasing shares.
Bond Transaction Announcement: Gerdau executed a Make-Whole call for its US$500 million 2030 bond, with a coupon rate of 4.25%, scheduled for settlement on December 2, 2025.
FMR LLC Reduces Stake in Brazil's Gerdau to 4.39% of Preferred Shares, According to Filing
- Company Stake Reduction: Brazil's Gerdaus has reduced its stake in the company to 4.39% of the preferred shares.
- Filing Announcement: The reduction in stake was disclosed through a formal filing.
Kawa Capital Management Fully Exits Gerdau S.A. with $6.49 Million Transaction
- Full Liquidation: Kawa Capital Management sold all 2,094,404 shares of Gerdau S.A. in Q4 2023 for approximately $6.49 million, reducing its exposure from 11.8% to 0%, indicating a strategic shift in risk management.
- Portfolio Shift: Following the liquidation, Kawa's top holdings now include BDN ($15.73 million, 36.4%), ONL ($12.54 million, 29.0%), and others, reflecting a pivot towards real estate and diversified materials companies.
- Stock Performance: As of January 20, 2023, Gerdau's shares were priced at $4.16, up 47% over the past year, significantly outperforming the S&P 500's 14% gain, showcasing the company's strong market position and pricing discipline.
- Investor Outlook: Gerdau's latest earnings report highlighted steady cash generation and ongoing capital returns, including dividends and buybacks, despite a normalization in steel markets, presenting a positive outlook for long-term investors focused on durability.
Kawa Capital Fully Exits Gerdau S.A. Position with $6.49 Million Transaction
- Position Liquidation: Kawa Capital sold 2,094,404 shares of Gerdau S.A. in Q4, with an estimated transaction value of $6.49 million, marking a reduction of its exposure from 11.8% to 0%, indicating a focus on risk management.
- Market Performance: As of January 20, Gerdau S.A. shares were priced at $4.16, reflecting a 47% increase over the past year, significantly outperforming the S&P 500's 14% gain during the same period, showcasing the company's strong performance in the steel market.
- Financial Health: In its latest earnings report, Gerdau highlighted steady cash generation and ongoing capital returns, including dividends and buybacks, despite the normalization of steel markets, demonstrating financial flexibility and a robust balance sheet.
- Investment Strategy Shift: The complete exit from Gerdau S.A. suggests that Kawa Capital may be restructuring its portfolio and managing risk after a significant stock price rally, shifting focus towards more diversified real estate and materials assets.
Benzinga Unveils Top Ten International Value Stocks for 2026
- Global Value Investment Opportunities: The Benzinga Value Ranking system identifies the top ten non-U.S. value stocks by integrating multiple valuation metrics, assisting investors in finding margin of safety and upside potential in a mispriced market.
- Valuation Dispersion Phenomenon: Outside the U.S., many profitable and asset-rich companies are overlooked, trading at single-digit earnings multiples, highlighting extreme valuation dispersion that presents potential investment opportunities.
- Risk Management Advantage: By focusing on the top decile of the Benzinga Value Ranking, investors can access the cheapest segment of the global market, thereby reducing risk as these stocks typically come with lower expectations.
- Long-Term Growth Potential: As we approach 2026, the Benzinga Value Ranking provides a systematic approach to uncover overlooked global stocks, which, while not guaranteed winners, offer limited downside risk and significant upside potential.
5 Value Stocks Worth Considering Amid Market Instability
Market Sentiment: Despite markets nearing all-time highs, investor sentiment has shifted from exuberance to cautious optimism, influenced by weak employment numbers and potential economic hardships from a federal government shutdown.
Value Stocks Recommendation: Investors with significant unrealized gains are advised to consider reallocating to value stocks to minimize losses and generate income through dividends, especially in light of potential market corrections.
Highlighted Value Stocks: Five value stocks are recommended for portfolio protection, including Sasol Ltd., Gerdau SA, Ecopetrol SA, Seaboard Corp., and Fluor Corp., each with strong fundamentals and favorable Benzinga Edge Value scores.
Technical Analysis Insights: Each stock shows signs of bullish momentum and technical indicators, such as Golden Crosses and moving averages, suggesting potential for price appreciation despite recent volatility.
GERDAU S.A. - COMPREHENSIVE DATA REPORT
3Q25 Financial Performance: Gerdau S.A. reported an adjusted EBITDA of R$2.7 billion for 3Q25, a 7% increase from 2Q25, with North America contributing 65% to the consolidated EBITDA.
Investment and CAPEX Guidance: The company invested R$1.7 billion in 3Q25, focusing 60% on asset competitiveness, and announced a 2026 CAPEX guidance of R$4.7 billion, which is 22% lower than the 2025 forecast.
Dividend and Share Buyback: A dividend of R$0.28 per share was declared, totaling R$555.2 million, and approximately 88% of the 2025 Share Buyback Program has been completed, with R$902 million invested in repurchasing shares.
Bond Transaction Announcement: Gerdau executed a Make-Whole call for its US$500 million 2030 bond, with a coupon rate of 4.25%, scheduled for settlement on December 2, 2025.
