Billionaire Richard Chilton is Dumping These 10 Stocks

Published February 15, 2022 at 4:09 pm EST Updated September 7, 2026 at 1:52 pm EDT

In this article, we will be looking at the 10 stocks that are being dumped by billionaire investor Richard Chilton.

Richard Chilton is an American investor, businessman, founder, chairman, and CEO of Chilton Investment Company. Mr. Chilton attended Alfred University, where he majored in finance and economics. Upon Graduating from Alfred University, Mr. Chilton joined Merrill Lynch and worked in the areas of mergers and acquisitions. In 1983, Mr. Chilton joined Alliance Capital as an analyst where he stayed until 1990. Mr. Chilton was then recruited by Allen & Company before founding his hedge fund, Chilton Investment Company, in 1992.

Richard Chilton follows an agile and value-oriented approach when it comes to investing. The billionaire adapts to changing market trends and sells or buys stocks accordingly. Chilton Investment Company targets a bottom-up approach towards investing and therefore prefers investing in stocks with relatively lower volatility to benefit from dividends and stable growth.

As of the third quarter of 2021, Chilton Investment Company has initiated positions in 33 stocks and completely exited 13 stocks. Mr. Chilton currently manages over $4.05 billion in 13F securities according to the September 13F filings. Among the top holdings of Chilton Investment Company, we have Microsoft Corporation (NASDAQ:MSFT), Mastercard Incorporated (NYSE:MA), The Home Depot, Inc. (NYSE:HD), and Costco Wholesale Corporation (NASDAQ:COST).

10 Stocks to Sell According to Billionaire Richard Chilton

Richard Chilton of Chilton Investment Company

Our Methodology

We compiled this list according to Chilton Investment Company’s 13F portfolio at the end of the third quarter of 2021 and picked the stocks Mr. Chilton exited completely.

10 Stocks to Sell According to Billionaire Richard Chilton

10. RPM International Inc. (NYSE:RPM)

Number of Hedge Fund Holders: 20

RPM International Inc. (NYSE:RPM) manufactures, markets, and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide.

During the second quarter of 2021, Chilton Investment Company’s stake in RPM International Inc. was over $1.52 million. By the end of the third quarter of 2021, Mr. Chilton sold his stakes in the company and completely exited the stock.

This December, Evercore ISI analyst Stephen Richardson upgraded RPM International Inc. to Outperform from In-Line and gave the stock a $105 price target.

RPM International Inc. was found to be among the 13F holdings of 20 hedge funds by the end of the third quarter of 2021. The total value of these funds’ stakes in the company amounted to roughly $80.55 million.

Unlike Microsoft Corporation, Mastercard Incorporated, The Home Depot, Inc., and Costco Wholesale Corporation, RPM International Inc. is a stock to sell according to billionaire Richard Chilton.

9. Vroom, Inc. (NASDAQ:VRM)

Number of Hedge Fund Holders: 23

Vroom, Inc. (NASDAQ:VRM) operates as an e-commerce platform for the buying and selling of new and used cars in the United States. It also offers financing solutions. The company was incorporated in 2012 and is headquartered in New York.

Mr. Chilton’s stake in Vroom, Inc. was $1.15 million in the second quarter of 2021. The investment covered 0.02% of Chilton Investment Company’s 13F portfolio. It was in the third quarter of 2021 that Mr. Chilton completely exited the stock.

By the end of the third quarter of 2021, 23 hedge funds held stakes in Vroom, Inc.. The total value of these stakes was $119.03 million.

Here’s what Miller Value Partners has to say about Vroom, Inc. in their third-quarter 2021 investor letter:

“Vroom, Inc. (VRM) was down 47.31% after reporting earnings that beat expectations but disappointed on guidance. Revenue of $761.9M beat consensus of $647.4M with EBITDA of -$60.7M slightly beating consensus of -$60.9M. The company guided for total revenue of $858-$891M versus consensus of $699M, but both gross margins and EBITDA disappointed. The company’s gross margin guidance of 6.2% was well below expectations of 8.8% leading to EBITDA of -$100M to -$92M against expectations -$59.4M as the company continues to invest for growth. The company also announced the appointment of Robert Krakowiak as CFO effective immediately, with David Jones remaining with the company through the end of November.”

8. Adaptive Biotechnologies Corporation (NASDAQ:ADPT)

Number of Hedge Fund Holders: 25

Adaptive Biotechnologies Corporation (NASDAQ:ADPT), a commercial-stage company, develops an immune medicine platform for the diagnosis and treatment of various diseases. Adaptive Biotechnologies Corporation was incorporated in 2009 and is headquartered in Seattle, Washington.

Insider Monkey spotted Adaptive Biotechnologies Corporation on 25 hedge fund portfolios by the end of the third quarter of 2021. These hedge funds had stakes worth approximately $1.77 billion in the company.

Chilton Investment Company had completely exited the stock by the end of the third quarter of 2021. Comparing this to the second quarter, Mr. Chilton’s stake in Adaptive Biotechnologies Corporation stood at $874,000 which accounted for 0.02% of Chilton Investment Company’s 13F portfolio.

7. Yum China Holdings, Inc. (NYSE:YUMC)

Number of Hedge Fund Holders: 30

Yum China Holdings, Inc. (NYSE:YUMC) owns, operates, and franchises restaurants in China. The company operates through two segments, KFC and Pizza Hut. In addition, the company operates franchise restaurants under the KFC, Pizza Hut, Huang Ji Huang, Taco Bell, Little Sheep, East Dawning, Lavazza, and COFFii & JOY names.

Chilton Investment Company’s stake in Yum China Holdings, Inc. by the end of the second quarter of 2021 was valued at $279,000, which the fund let go of in the third quarter of 2021. By the end of the third quarter of 2021, there were 30 hedge funds that held stakes in Yum China Holdings, Inc.. The total value of these stakes exceeded $832.64 million.

6. Air Products & Chemicals, Inc. (NYSE:APD)

Number of Hedge Fund Holders: 32

Air Products & Chemicals, Inc. provides atmospheric, process, and specialty gases, equipment, and services worldwide. This November, Air Products & Chemicals, Inc. announced that its board of directors declared a quarterly cash dividend of $1.50 per share on the company’s common stock. The stock has a forward yield of 2.03%, and the dividend was payable on February 14, 2022, to shareholders of record on 3rd January 2022. The company was founded in 1940 and is headquartered in Allentown, Pennsylvania.

On November 5, Deutsche Bank analyst David Begleiter raised his price target on Air Products & Chemicals, Inc. to $340 from $315 and reiterated a Buy rating on the shares.

By the end of the third quarter of 2021, 32 hedge funds held stakes in Air Products & Chemicals, Inc.. The total value of these stakes came out at $528.73 million. Chilton Investment Company was not one of these hedge funds, since the fund completely exited the stock in the third quarter. For the second quarter of 2021, Mr. Chilton’s stake in Air Products & Chemicals, Inc. was valued at $1.79 million. The investment covered 0.04% of Chilton Investment Company’s 13F portfolio.

Mr. Chilton sold his stakes in Air Products & Chemicals, Inc. by the end of the third quarter of 2021. However, the billionaire kept his stakes in Microsoft Corporation, Mastercard Incorporated, The Home Depot, Inc. and Costco Wholesale Corporation.

5. The Clorox Company (NYSE:CLX)

Number of Hedge Fund Holders: 34

The Clorox Company (NYSE:CLX) manufactures and markets consumer and professional products worldwide. It operates through four segments: Health and Wellness, Household, Lifestyle, and International.

This November, DA Davidson analyst Linda Bolton Weiser raised her price target on The Clorox Company to $162 from $145 and reiterated a Neutral rating on the shares.

Here’s what LRT Capital Management had to say about The Clorox Company in their first quarter 2021 investor letter:

“For several months now, our largest position has been Clorox – the cleaning products company. Besides wipes, the company also manufactures bleach, charcoal, cat litter, plastic bags, and container products. Clorox benefited during the Covid-19 pandemic from an increased demand for cleaning products. Companies and consumers trust the Clorox brand – a source of the company’s huge competitive advantage.

United Airlines, for example, chose to partner with Clorox in its push to reassure consumers about the safety of air travel. The company is a typical “defensive” holding – subject to very small fluctuations in end market demand. Its branded consumer products remain in strong demand. Historically (pre-Covid), the company’s sales grew in line with GDP, while earnings-per-share grew slightly faster due to operational and financial leverage. We expect sales will decline slightly in the next few quarters as the Covid-19 pandemic comes to an end, but we believe this decline is more than accounted for by the company’s low valuation.

On February 4th, Clorox reported results for Q4 2020, with both earnings and sales beating estimates. Sales grew by +27% (vs. 20% estimate) from the prior year’s Q4, and EPS increased +39% ($2.03 vs. $1.75 expected). The company continues to see robust demand and raised its sales and EPS guidance for the rest of the year. Shares are down 4% year-to-date. We believe the shares are undervalued at 20x trailing and 24x forward earnings and currently represent an excellent opportunity.”

4. Texas Roadhouse Inc (NASDAQ:TXRH)

Number of Hedge Fund Holders: 36

Texas Roadhouse Inc (NASDAQ:TXRH) operates a chain of casual dining restaurants in the United States and internationally. As of December 29, 2020, it operated 537 domestic restaurants and 97 franchise restaurants.

In the third quarter of 2021, Chilton Investment Company completely exited Texas Roadhouse Inc. Comparing this to the second quarter of 2021, the fund’s stake in the company was $2.23 million, which accounted for 0.05% of Mr. Chilton’s 13F portfolio.

Insider Monkey was able to identify 36 hedge funds that held stakes in Texas Roadhouse Inc by the end of the third quarter. The total value of these stakes was over $993.48 million, up from $806.75 million in the previous quarter.

3. Coherent, Inc. (NASDAQ:COHR)

Number of Hedge Fund Holders: 37

Coherent, Inc. (NASDAQ:COHR) provides lasers, laser-based technologies, and laser-based system solutions for a range of commercial, industrial, and scientific research applications.

Chilton Investment Company’s stake in the company was roughly $695,000 at the end of the second quarter of 2021. Mr. Chilton completely sold his stakes in Coherent, Inc. in the third quarter of 2021.

Out of the 867 elite funds tracked by Insider Monkey, 37 held stakes in Coherent, Inc. by the end of the third quarter of 2021. These stakes amounted to $1.46 billion.

Appleseed Fund published its first-quarter 2021 investor letter, in which the firm mentioned Coherent, Inc.. Here’s what the firm had to say:

“Our most significant contributors to the Fund’s equity performance during the quarter (includes) Coherent (COHR). During the quarter, Coherent announced that it was being acquired, after which several other bidders emerged. Between the takeover announcement and the bidding war among Coherent suitors, the shares rallied strongly during the quarter.”

2. Ecolab Inc. (NYSE:ECL)

Number of Hedge Fund Holders: 39

Ecolab Inc. (NYSE:ECL) provides water, hygiene, and infection prevention solutions and services worldwide. The company operates through the following segments: Global Industrial, Global Institutional & Specialty, and Global Healthcare & Life Sciences. On December 2, Ecolab Inc. announced that its board of directors raised the company’s quarterly dividend by 6.3% to $0.51 per share, up from $0.48 per share. The dividend is payable on January 18, 2022, for shareholders of record December 14, 2021.

This December, Evercore ISI analyst Stephen Richardson resumed coverage of Ecolab Inc. with an In-Line rating and a $235 price target.

By the end of the third quarter of 2021, 39 hedge funds held stakes in Ecolab Inc. worth $2.55 billion. Chilton Investment Company was not one of these 39 funds since Mr. Chilton sold his stakes in the company and completely exited the stock in the third quarter.

1. United Parcel Service, Inc. (NYSE:UPS)

Number of Hedge Fund Holders: 42

United Parcel Service, Inc. (NYSE:UPS) provides letter and package delivery, transportation, logistics, and financial services. It operates through three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight.

Mr. Chilton decided that it was time to let the investment go and sold his stake in the company in the third quarter of 2021. United Parcel Service, Inc. covered 0.07% of Chilton Investment Company’s 13F portfolio in the second quarter of 2021 when Mr. Chilton’s stake in the company was in excess of $3.04 million.

On October 27, Raymond James analyst Patrick Tyler Brown raised his price target on United Parcel Service, Inc. to $260 from $240 and reiterated a Strong Buy rating on the shares following the company’s earnings results for the third quarter of 2021.

United Parcel Service, Inc. was spotted on 42 hedge fund portfolios by the end of the third quarter of 2021. The total stakes of these funds in the company amounted to $1.26 billion.

ClearBridge Investments published its “Dividend Strategy” second quarter 2021 investor letter, in which the firm mentioned United Parcel Service, Inc.. Here’s what the firm had to say:

“We funded the shift primarily with trims in UPS following big gains in this name. UPS is a long-term holding that have been and remain core holdings. During the quarter, however, we took gains and resized the positions to reflect their current risk-reward post strong increases in the stocks.

UPS too has been a core, long-term holding. For many years its stock languished alongside fundamental performance that was both uneven and often uninspiring. Since Carol Tomé took the reins last summer and capitalized on COVID-19-related freight disruptions, UPS’s earnings have soared, and the stock has followed suit. We trimmed the position toward the end of the quarter despite continued near-term momentum and an undemanding valuation multiple. This trim reflects the longerterm risk, though hard to quantify, that Amazon may become a full-fledged competitor and meaningfully disrupt the dynamics of the industry. While not our base case, this risk cannot be disproven. We continue to be very bullish on UPS’s near-term outlook and optimistic about its longer-term outlook, while also continually looking over our shoulder to make sure Amazon is not on our heels.”

You can also take a look at 10 Best Dividend Stocks to Buy According to Billionaire Richard Chilton and 10 Best Dividend Stocks to Buy According to Billionaire George Soros.

Follow Insider Monkey on Twitter