Eco Recycling: Taking a Loss and Sticking to the Rules
Invested in an ESG-thesis recycling company, hit a pre-set stop loss, and exited with discipline despite conviction in the macro
Parth Somani
Overview
Parth invested in Eco Recycling in 2025, drawn by a macro thesis around ESG tailwinds and growing demand for lithium battery and copper recycling. The thesis was straightforward: global pressure toward environmental compliance would drive demand for recycling infrastructure, and Eco Recycling was positioned in that space.
The Story
Parth invested in Eco Recycling in 2025, drawn by a macro thesis around ESG tailwinds and growing demand for lithium battery and copper recycling. The thesis was straightforward: global pressure toward environmental compliance would drive demand for recycling infrastructure, and Eco Recycling was positioned in that space.
The thesis did not play out. Geopolitical disruptions shifted corporate and government priorities away from environmental investment toward cost minimization. Recycling lost the tailwind Parth had counted on.
He had entered with a pre-set stop loss. When the stock fell to that level, the stop loss triggered. He exited the position and booked the loss, despite his continued belief in the long-term macro thesis.
The experience reinforced his rule-based approach to risk management: investment rules are set before entry, not revised under pressure.