Is DuPont de Nemours (DD) a Smart Long-term Buy?

Rhizome Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 2.9% for the third quarter (net of fees), underperforming its benchmark, the S&P 500 Index which returned 8.9% in the same quarter. You should check out Rhizome Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Rhizome Partners highlighted a few stocks and DuPont de Nemours Inc. (NYSE:DD) is one of them. DuPont de Nemours Inc. (NYSE:DD) is a chemical company. Year-to-date, DuPont de Nemours Inc. (NYSE:DD) stock lost 1.2% and on November 13th it had a closing price of $63.42. Here is what Rhizome Partners said:

“Three out of four DuPont segments reported EBITDA margins of 27‐31%. The remaining segment suffered an 86% decline in EBITDA due to its exposure to auto and industrials. In aggregate, DuPont’s Q2 EBITDA declined by 14% versus the same quarter in 2019. This is a testament to DuPont’s portfolio of specialty products that can command pricing power even during the worst of the times.”

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This isn’t the first time Rhizome Partners talked about DuPont de Nemours Inc. (NYSE:DD) favorably either. The investment firm has been a long time DuPont de Nemours Inc. (NYSE:DD) bull. In April 2020, we shared Rhizome Partners’ bullish DuPont de Nemours Inc. (NYSE:DD) thesis in this article.

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 believe in DuPont’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.