DuPont de Nemours (DD) Has Fallen 17% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of GDS Investments top stock picks. GDS Investments, an investment management firm, is betting on Dupont De Nemours Inc. (NYSE:DD) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Dupont De Nemours Inc. (NYSE:DD) stock. Dupont De Nemours Inc. (NYSE:DD) is a chemical company.

In July 2019, GDS Investments had released its Q2 2019 investor letter. Dupont De Nemours Inc. (NYSE:DD) stock has posted a return of -17.2% in the trailing one year period, underperforming the S&P 500 Index which returned 10.9% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Dupont De Nemours Inc. (NYSE:DD) stock has fallen by 7.7%.

Let’s take a look at comments made by GDS Investments about Dupont De Nemours Inc. (NYSE:DD) stock in the Q2 2019 investor letter.

“We then used the proceeds to purchase more shares of DuPont. That purchase allows us greater exposure to DuPont and the (as-of-then) not-yet spun off Corteva business. When Corteva was spun off on June 1, 2019, DuPont shareholders received one share of Corteva for every three shares of DuPont which they owned. The remaining legacy DuPont (which boasts $23B in annual sales) is now listed under ticker symbol DD and sells lower volume/higher margin plastics and adhesives typically used in auto, consumer goods, and electronics end-markets. The company’s better margin profile is the result of intellectual property and specialized manufacturing processes which its competitors just don’t have.”

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In Q2 2020, the number of bullish hedge fund positions on Dupont De Nemours Inc. (NYSE:DD) stock increased by about 19% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with DD’s growth potential. Our calculations showed that Dupont De Nemours Inc. (NYSE:DD) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.