Is DuPont de Nemours (DD) A Smart Long-Term Buy?

Longleaf Partners Global Fund, an independent investment management firm, published its fourth quarter 2020  investor letter – a copy of which can be downloaded here. A return of 17.46% was recorded by the fund in the fourth quarter of 2020, outperforming its MSCI World benchmark that delivered a 13.96% return in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Longleaf Partners Global Fund, in their Q4 2020 investor letter, mentioned DuPont de Nemours, Inc. (NYSE: DD) and emphasized their views on the company. DuPont de Nemours, Inc. is a Wilmington, Delaware-based chemicals company that currently has a $41.9 billion market capitalization. Since the beginning of the year, DD delivered a 10.35% return, impressively extending its 12-month gains to 131.95%. As of March 26, 2021, the stock closed at $78.47 per share.

Here is what Longleaf Partners Global Fund has to say about DuPont de Nemours, Inc. in their Q4 2020 investor letter:

“DuPont de Nemours (58%, 2.36%; 29%, 1.09%), the industrial conglomerate, contributed after we initiated a position in the company for the third time in our history in March. The share price rebounded quickly, and it was a top contributor in 2Q. The company will soon close a value accretive merger between its Nutrition business and International Flavors & Fragrances that will then lead to an intelligentlystructured split-off. The Safety & Construction and Transportation & Industrial segments partially rebounded due to their strength in personal protective equipment (PPE) and global auto builds, respectively. Electronics & Imaging grew revenues 8% during the last quarter due to its exposure to semiconductors and 5G chips. Despite the industrial recession, CEO Ed Breen made excellent decisions to grow the value this year and improved both capital allocation and operations. Through its TyvekTogether program, DuPont partnered with multiple companies to produce and donate protective gowns for healthcare workers in the fight against COVID. “


Our calculations show that DuPont de Nemours, Inc. (NYSE: DD) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, DuPont de Nemours, Inc. was in 60 hedge fund portfolios, compared to 61 funds in the third quarter. DD delivered a 12.83% return in the past 3 months.