This $96 Million Steel Bet Signals Conviction in Cleveland-Cliffs Despite a $1.4 Billion Annual Loss
Key Points
Turiya Advisors Asia took a new stake of 7,250,000 shares in Cleveland-Cliffs.
The quarter-end value of the new holding was $96.28 million.
The new stake represents 14.75% of the fund’s U.S. equity holdings.
Turiya Advisors Asia Ltd initiated a new position in Cleveland-Cliffs (NYSE:CLF) during the fourth quarter, acquiring 7,250,000 shares in a trade estimated at $96.28 million, according to a February 11 SEC filing.
What happened
According to an SEC filing dated February 11, Turiya Advisors Asia Ltd established a new position in Cleveland-Cliffs by purchasing 7,250,000 shares. The fund’s quarter-end stake was valued at $96.28 million.
What else to know
This was a new position, now comprising 14.75% of Turiya Advisors Asia Ltd’s 13F reportable assets under management as of December 31.
Top holdings after the filing:
- NASDAQ: GOOGL: $225.77 million (34.6% of AUM)
- NASDAQ: TSEM: $172.85 million (26.5% of AUM)
- NYSE: CLF: $96.28 million (14.8% of AUM)
- NYSE: GEO: $91.00 million (13.9% of AUM)
- NYSE: PSTG: $67.01 million (10.3% of AUM)
As of February 11, shares of Cleveland-Cliffs were priced at $12.48, up 10.4% over the prior year.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 2/11/26) | $12.48 |
| Market Capitalization | $7.12 billion |
| Revenue (TTM) | $18.61 billion |
| Net Income (TTM) | ($1.48 billion) |
Company snapshot
- Cleveland-Cliffs produces flat-rolled steel, stainless steel, electrical steel, tinplate, tubular components, and hot-briquetted iron.
- The company generates revenue primarily through the manufacture and sale of steel products and value-added steel solutions for various industrial applications.
- Its main customers include automotive manufacturers, infrastructure and manufacturing firms, distributors, converters, and other steel producers across North America.
Cleveland-Cliffs Inc. is a leading North American steel producer with a vertically integrated business model, leveraging both steelmaking and iron ore mining assets. The company serves a diversified customer base, with significant exposure to the automotive and manufacturing sectors. Its scale, product breadth, and control over raw materials position it as a key supplier in the regional steel industry.
What this transaction means for investors
This move creates a $96.28 million position that now accounts for 14.75% of reported assets, instantly making steel a core driver of portfolio performance in a heavily concentrated portfolio.
Cleveland-Cliffs just reported fourth-quarter revenue of $4.3 billion, flat year over year, alongside a $235 million net loss and an adjusted EBITDA loss of $21 million. For the full year, revenue slipped to $18.6 billion from $19.2 billion, and net loss widened to $1.4 billion. Liquidity stood at $3.3 billion, and management is guiding for 2026 steel shipments of roughly 16.5 to 17.0 million net tons, with targeted unit cost reductions of about $10 per net ton.
That backdrop makes the allocation notable. This is a portfolio already concentrated in large technology names and cyclical plays, with over $225 million in Alphabet and nearly $173 million in Tower Semiconductor. Adding a nearly $100 million steel position alongside a $91 million stake in GEO tilts exposure toward economically sensitive assets.
Long-term investors should focus less on quarterly losses and more on balance sheet flexibility, cost discipline, and whether improved trade dynamics and automotive demand can translate into sustained margin recovery. A position this large suggests the buyer believes the cycle is closer to a trough than a peak.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Pure Storage. The Motley Fool has a disclosure policy.