Palm Valley Fund Flags Aluminum Pressure on Reynolds Shares
The fund cited Canadian import tariffs and aluminum volatility, while Reynolds’ foil gains helped offset weaker Hefty Waste profits.
Key takeaways
- Palm Valley Capital Fund named Reynolds among its three biggest Q3 detractors.
- The fund linked share volatility to aluminum-market pressure after tariffs on Canadian imports.
Reynolds Consumer Products was one of Palm Valley Capital Fund’s three biggest detractors in the third quarter of 2026, the fund said in its investor letter. As of Monday afternoon, the shares traded at $22.09, down 1.03% from the previous close.
The fund said Reynolds shares may have faced volatility from aluminum prices, which were affected by new tariffs on Canadian imports. Canada supplies roughly half of the aluminum used in the United States, according to the letter.
Reynolds reported second-quarter operating profit growth in its foil and home and tableware businesses. Those gains were partly offset by lower Hefty Waste profits amid aggressive promotions from competitors, the fund said.
This article was produced with the help of AI technology. Source: Yahoo Finance
