Hedge fund elitist David Einhorn trumpeted the news that his investment in a Belgian chemical company had sent its shares soaring by 18 percent.

• David Einhorn, speaking at the Sohn Conference, listed Solvay in the top five of his investment group.

• The hedge fund manager said the Belgian chemical company had a high rate of return on capital and a stable profit margin.

• Einhorn said sell-side analysts with a negative view of the company had overlooked the company's main source of revenue.

Value investing legend David Einhorn set his sights on Belgium's Solvay, praising the company's market potential in a speech at the Sohn Conference. In a subsequent interview with CNBC, he said that the company was in the top five of his portfolio.

"Solvay is a commodity chemicals company with relatively high and stable margins, a high rate of return on capital, and a good return on capital," Einhorn outlined Wednesday. He added, "We believe that this boring, basic chemicals business will provide investors with attractive risk-adjusted returns."

Those words sent Solvay's ADS soaring 18% to $3.22 per share at 2:45 p.m. EST.

To a large extent, the company is focused on producing soda, a common chemical used in the production of everything from glass and soap to lithium batteries. While soda is not an unstable commodity, COVID's distortions have reduced its capacity utilization, and 2024 will be a down year, Einhorn said.

He cited the example that many sell-side analysts had rated Solvay mostly negatively because of its association with soda. But these reports largely ignored the fact that Solvay 70% derived its revenue from other chemical products, including peroxides, silica and coatings.

"The point I'm trying to make," he said, "is that while we all know that soda prices and margins will be down in 2024, the rest of the business is less cyclical and more resilient." The bears seem intent on ignoring this reality altogether.

In addition, the company is rated as an investment grade company with low leverage and a high rate of return on capital, he said.

Einhorn said that while the consensus estimate is for earnings of €3.62 per share this year, the economic recovery in Europe should keep the company's share price above €4 per share in 2024.

"If Gunn executes on its growth and cost targets, normal earnings per share should [rise] to more than €6 per share.

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