SCHEDULE 13G: Donald Smith & Co. Discloses 7.7% Passive Stake in Algoma Steel Group Inc.

Investment firm Donald Smith & Co., Inc. and its affiliate DSCO Value Fund, L.P. have jointly reported a 7.7% beneficial ownership stake in Algoma Steel Group Inc. as of March 31, 2025.

Summary

• Donald Smith & Co., Inc., a Delaware Corporation and investment adviser, along with DSCO Value Fund, L.P., a Delaware private fund, have filed a Schedule 13G.
• The filing discloses their aggregate beneficial ownership of 8,088,120 common shares of Algoma Steel Group Inc.
• This aggregate ownership represents 7.7% of the issuer's common stock.
• Donald Smith & Co., Inc. holds sole voting power over 7,707,837 shares and sole dispositive power over 8,016,707 shares.
• DSCO Value Fund, L.P. holds sole voting power over 71,413 shares and sole dispositive power over 71,413 shares.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of Algoma Steel Group Inc.
• Donald Smith & Co., Inc. serves as an investment advisor to institutional clients, and while it has discretionary authority, clients or their custodians retain the right to receive dividends and proceeds from sales.
• No single client of Donald Smith & Co., Inc. owns more than 5% of the class of securities reported.

Sentiment

Score: 5

Explanation: A Schedule 13G filing is a routine disclosure of beneficial ownership and does not inherently convey positive or negative sentiment regarding the issuer's performance or outlook. The stated purpose of the holding is passive investment in the ordinary course of business.

Positives

• The disclosure of a significant, passive investment by a reputable investment firm like Donald Smith & Co. can be viewed as a vote of confidence in Algoma Steel Group Inc. by institutional investors.

Future Outlook

This Schedule 13G filing is a disclosure of beneficial ownership and does not contain forward-looking statements or guidance regarding Algoma Steel Group Inc.'s future performance or outlook.

Management Comments

• "To the knowledge of Donald Smith & Co., Inc., with respect to all securities reported in this schedule owned by advisory clients of Donald Smith & Co., Inc., not more than 5% of the class of such securities is owned by any one client."
• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under 240.14a-11."

Industry Context

Algoma Steel Group Inc. operates within the steel industry. This filing indicates a significant, passive investment by an institutional investor, which is a common occurrence in publicly traded companies across various industries, reflecting portfolio allocation decisions rather than specific industry-wide trends.

Stakeholder Impact

• Shareholders: The disclosure provides transparency regarding a significant institutional holder, which can influence investor perception and potentially liquidity.

Key Dates

Keywords

Algoma Steel Group Inc., Donald Smith & Co., DSCO Value Fund, Schedule 13G, beneficial ownership, common stock, investment adviser, passive investment, steel industry