Is it a Good Time to Go Short on Honeywell International (HON)?

Distillate Capital, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. Distillate Capital’s U.S. and International Fundamental Stability & Value strategies returned -1.49% and -7.06% on a net of fees basis for the quarter, respectively. The U.S. portfolio lagged its S&P 500 benchmark by around 2.1% in the quarter, causing the year-to-date performance to trail that benchmark by around 2.2%. The international portfolio likewise lagged its benchmark, the iShares MSCI ACWI ex-US ETF, in the quarter, and year-to-date performance is trailing the benchmark by a more substantial 6.6% after outperformance of around 8.0% last year. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Distillate Capital, in its Q3 2021 investor letter, mentioned Honeywell International Inc. (NYSE: HON) and discussed its stance on the firm. Honeywell International Inc. is a Charlotte, North Carolina-based multinational conglomerate company with a $142.5 billion market capitalization. HON delivered a -2.66% return since the beginning of the year, while its 12-month returns are down by -0.99%. The stock closed at $207.05 per share on December 29, 2021.

Here is what Distillate Capital has to say about Honeywell International Inc. in its Q3 2021 investor letter:

“The largest exited positions were Oracle, which outperformed significantly, and Texas Instruments and Honeywell, which were roughly flat versus the market in the quarter but were edged out for inclusion by other stocks that became even more attractively valued.”

Photo by Austin Distel on Unsplash

Based on our calculations, Honeywell International Inc. (NYSE: HON) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. HON was in 45 hedge fund portfolios at the end of the third quarter of 2021, compared to 57 funds in the previous quarter. Honeywell International Inc. (NYSE: HON) delivered a -3.68% return in the past 3 months.

In December 2021, we published an article that includes HON in the 11 Best Manufacturing Stocks to Invest In. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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