Chemours Company (CC) Begins Its Predicted Fall

If Fischer is to be believed, large shareholders of E I Du Pont De Nemours And Co (NYSE:DD) will benefit, as they got one Chemours Company (NYSE:CC) share per each batch of five DuPont shares they owned as of June 23. These large shareholders include Nelson Peltz‘s Trian Partners which had the biggest position in E I Du Pont De Nemours And Co (NYSE:DD) at the end of the first quarter (and fought a losing proxy battle against it this year, during which he criticized Chemours’ planned governance as archaic, “1970’s-style board governance”), comprised of 24.56 million shares worth close to $1.76 billion, or 20.5% of its total 13F portfolio. On Trian Partners’ heels is Adage Capital Management, led by Phill Gross and Robert Atchinson, holding a $98.1 million position made up of 1.37 million shares; the fund has 0.2% of its 13F portfolio invested in the stock. Jonathon Jacobson‘s Highfields Capital Management also owned about 1.31 million shares of DuPont at the end of March valued at about $93.61 million.

Since shareholders of DuPont got one Chemours Company (NYSE:CC) share for every five E I Du Pont De Nemours And Co (NYSE:DD) they owned, Trian Partners, Adage Capital Management and Highfields Capital Management owned approximately 4.91 million shares, 274,560 shares and 261,965 shares of Chemours respectively when it started trading. These hedge funds appear to be losing money as Chemours continues its slide, if they haven’t already reduced their positions.

The continued disappointing performance of Chemours Company (NYSE:CC) as well as the negativity of most industry observers weighing in on the stock, lead us to conclude that it is not a safe bet at the moment. One may believe Barclays, which says that the firm’s deep value for best in class assets is rare and that the convergence of the spinoff, weakening fundamentals, and dividend issues offer an attractive entry point, but most other analyst firms are showing more concern than confidence in the performance chemicals company and we tend to agree with them.

Disclosure: None