Renowned investor David Einhorn has revealed his long bet on European essential chemicals company Solvay SA. The Greenlight Capital founder made the announcement at the Sohn Investment Conference in New York, causing Solvay’s American depositary receipts to surge 13% to $3.10 apiece at 2:19 p.m. in New York.

Solvay, a major producer of soda ash, is set to expand its capacity by 7% in Wyoming in the coming years, as stated by Einhorn. Additionally, the company offers a range of products including peroxides, solvents, and silica used in various consumer goods such as tires, toothpaste, and animal feed. Einhorn expressed confidence in Solvay’s management, stating that the company has above-average management for a European chemicals company.

Einhorn emphasized the potential of the essential-chemicals business, stating that it will generate attractive, risk-adjusted returns for investors. He also highlighted the favorable conditions for value investors, citing a scarcity of competition and abundant opportunities to find companies with strong cash-on-cash returns. According to Einhorn, these conditions are reminiscent of those found at the bottom of a bear market.

David Einhorn’s endorsement of Solvay SA has drawn attention to the potential opportunities in the essential chemicals industry, as well as the favorable conditions for value investors. The surge in Solvay’s stock following Einhorn’s announcement reflects the impact of his endorsement on investor sentiment.