SCHEDULE 13G: Donald Smith & Co. Discloses 6.4% Passive Stake in Cool Co Ltd.

Donald Smith & Co., Inc., along with affiliated entities, has reported a 6.4% beneficial ownership stake in Cool Co Ltd. as of December 31, 2024, held for ordinary investment purposes.

Summary

• Donald Smith & Co., Inc., DSCO Value Fund, L.P., and Jon Hartsel collectively reported beneficial ownership of 3,440,652 shares of Cool Co Ltd. common stock.
• This aggregate ownership represents 6.4% of Cool Co Ltd.'s total outstanding common stock.
• The filing, a Schedule 13G, indicates that 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 Cool Co Ltd.
• Donald Smith & Co., Inc. serves as an investment advisor, with the ultimate power to direct the receipt of dividends and proceeds from the sale of securities vested in its institutional clients; no single client owns more than 5% of the class.

Sentiment

Score: 6

Explanation: The document is a neutral, factual disclosure of beneficial ownership. The presence of a significant institutional investor can be seen as a positive signal of confidence, but the filing itself contains no performance data or strategic updates to warrant a higher or lower score. It is a routine compliance filing.

Positives

• The disclosure of a significant 6.4% stake by an established investment firm like Donald Smith & Co., Inc. may signal institutional confidence in Cool Co Ltd.'s long-term value.
• The explicit statement that the stake is held for ordinary course of business and not for control purposes suggests a passive, long-term investment strategy, which can be viewed positively by other investors.

Negatives

• The document, being a beneficial ownership report, does not contain any negative financial or operational information about Cool Co Ltd.

Risks

• Donald Smith & Co., Inc. does not serve as custodian of client assets, and the discretionary authority delegated to them by clients can be revoked at any time, which could lead to changes in the reported beneficial ownership.

Future Outlook

The document does not provide forward-looking statements or guidance regarding Cool Co Ltd.'s future performance, strategic plans, or financial outlook, as it is solely a beneficial ownership disclosure.

Management Comments

• "The undersigned persons, on January 22, 2025, agree and consent to the joint filing on their behalf of this Schedule 13G in connection with their beneficial ownership of the Common Stock of Cool Co Ltd. at December 31, 2024."
• "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

This Schedule 13G filing is a routine regulatory disclosure by an institutional investor regarding a significant passive ownership stake in a publicly traded company. It does not offer specific insights into broader industry trends, competitive dynamics, or Cool Co Ltd.'s position within its sector.

Comparison to Industry Standards

• This document is a standard regulatory filing (Schedule 13G) required for disclosing beneficial ownership exceeding 5% of a company's outstanding shares. It does not contain financial or operational results that can be directly compared to industry benchmarks or specific comparable companies/projects.
• The disclosure of a 6.4% passive stake by an investment advisor like Donald Smith & Co., Inc. is a common occurrence in the investment landscape, indicating a significant but non-controlling position consistent with typical institutional investment practices.

Stakeholder Impact

• Shareholders: Provides transparency regarding significant institutional ownership, potentially signaling confidence from a major investor.
• Management: Awareness of a significant passive shareholder, though no direct impact on operations or strategy is indicated by this filing.

Next Steps

• The document does not outline any specific future actions, events, or milestones for Cool Co Ltd. or the reporting persons beyond the regulatory filing itself.

Key Dates

Keywords

Cool Co Ltd, Donald Smith & Co. Inc., DSCO Value Fund, Jon Hartsel, Schedule 13G, Beneficial Ownership, Institutional Investor, Common Stock, Investment Management, Passive Investment