Voya MI Dynamic Small Cap Fund trimmed Tronox in Q2, citing softer earnings guidance and high leverage risks from Chinese TiO2 exports. The stock closed at $5.96.
Alpha Score of 44 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Voya Investment Management's MI Dynamic Small Cap Fund reduced its exposure to Tronox Holdings in the second quarter, pointing to softer earnings guidance and high leverage. The overweight position in the titanium dioxide pigment producer was a drag on performance, the fund said in its Q2 2026 investor letter.
Tronox closed at $5.96 on August 14, up 46% over the past 52 weeks. The market capitalization sits at $951.8 million. Hedge fund ownership fell to 31 funds in the first quarter, down from 32 in the prior period.
The fund's letter described the position as held for "risk management reasons" and noted competitive headwinds from elevated Chinese export volumes. Tronox is a vertically integrated mining company and a leading manufacturer of TiO2 pigment, a chemical used in paints, plastics, and paper.
The 52-week gain masks a steeper decline from the 2021 peak when TiO2 prices were near cycle highs. The stock has fallen roughly 70% from that level. The company carries a high debt load from its 2021 acquisition of the Cristal TiO2 business.
Tronox has not issued a formal guidance revision since its Q1 earnings call in May, when management forecast adjusted EBITDA of $600 million to $650 million for 2026. The stock has since traded in a tight range near $6, suggesting the market is waiting for clearer signals on demand recovery or a reduction in Chinese export flows.
For the fund, the decision to reduce the position reflects a broader caution on commodity cyclicals with high leverage. Other small-cap value managers that hold Tronox have been similarly active. AlphaScala rates TROX as Unscored, with no Alpha Score available. For more details, see the TROX stock page.
"The overweight position in Tronox Holdings plc, a titanium dioxide pigment producer, was primarily driven by risk management reasons and had a negative impact on performance," the fund said.
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