Keeping a Close Watch: Garrett Motion’s (GTX) Rising Share Price and Future Returns

Keeping a Close Watch: Garrett Motion’s (GTX) Rising Share Price and Future Returns

Thu, August 27, 2026 at 3:55 PM GMT+3 3 min read

• GTX -0.57%

Alluvial Capital Management's Q2 2026 investor letter for the Alluvial Fund reported a 4.9% return, with a year-to-date increase to 8.0%. A copy of the letter can be downloaded here. While these results are acceptable, they are overshadowed by the impressive performance of small-cap and micro-cap stocks, particularly in AI and semiconductor sectors. The portfolio remains stable and focused on dependable cash flow producers, although it sometimes lags in momentum-driven markets. July showed improvement for Alluvial Fund as benchmarks declined. The author emphasizes the importance of a dependable investment strategy focused on solid cash flow producers, while expressing confidence that the portfolio's intrinsic value discount will lessen over time. The letter aims to communicate the fund's approach and highlights potential opportunities in overlooked sectors, urging a long-term investment perspective amidst current market trends. Also, check the fund's top five holdings to see its best picks in 2026.

In its Q2 2026 investor letter, Alluvial Fund highlighted Garrett Motion Inc. (NASDAQ:GTX). Garrett Motion Inc. (NASDAQ:GTX) designs and manufactures engineered turbocharging and high-speed electric motor technologies for OEMs, distributors, and industrial fields. On August 26, 2026, Garrett Motion Inc. (NASDAQ:GTX) stock closed at $18.11 per share. One-month return of Garrett Motion Inc. (NASDAQ:GTX) was -12.09%, and its shares gained 108.64% over the past 52 weeks. Garrett Motion Inc. (NASDAQ:GTX) has a market capitalization of $3.46 billion.

Alluvial Fund stated the following regarding Garrett Motion Inc. (NASDAQ:GTX) in its Q2 2026 investor letter:

"Garrett Motion Inc. (NASDAQ:GTX) is one of Alluvial Fund's longest-tenured holdings. 2026 has been a watershed year for Garrett, with investors waking up to the fact that the company's turbochargers have applications well beyond the automotive industry. Garrett is increasingly selling to data centers and utilities seeking improved energy efficiency and output. While shares have run up considerably, the valuation remains reasonable and the company continues to return the majority of free cash flow to shareholders. Garrett deserves its new, higher multiple of earnings and cash flows, but we are keeping a close eye. If shareholder exuberance lifts Garrett shares to the point of no longer offering attractive forward returns, we will not hesitate to sell."

Garrett Motion Inc. (NASDAQ:GTX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Garrett Motion Inc. (NASDAQ:GTX) at the end of the second quarter, which was 49 in the previous quarter. While we acknowledge the potential of Garrett Motion Inc. (NASDAQ:GTX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we discussed Garrett Motion Inc. (NASDAQ:GTX) and highlighted a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.