In this article, we discuss Dan Loeb’s 5 long-term stock picks. If you want to read our detailed analysis of Dan Loeb’s investment strategy and latest activist targets, check out Mr. Pink Dan Loeb’s Long-Term Stock Picks.
5. DuPont de Nemours, Inc. (NYSE:DD)
Number of Hedge Fund Holders: 52
Third Point’s Stake Value: $287,080,000
Third Point’s Holding Period: 2 years 3 months
DuPont de Nemours, Inc. (NYSE:DD) offers technology-led materials and solutions worldwide, with its operations divided into three segments – Electronics & Industrial, Water & Protection, and Corporate & Other. DuPont de Nemours, Inc. (NYSE:DD) has been part of Mr. Pink’s portfolio for 2 years and 3 months. As per securities filings for the first quarter of 2023, Loeb raised his stake in DuPont de Nemours, Inc. (NYSE:DD) by 34%, holding 4 million shares worth $287 million.
On June 27, DuPont de Nemours, Inc. (NYSE:DD) declared a $0.36 per share quarterly dividend, in line with previous. The dividend is payable on September 15, to shareholders of record on July 31.
According to Insider Monkey’s first quarter database, 52 hedge funds were bullish on DuPont de Nemours, Inc. (NYSE:DD), compared to 48 funds in the prior quarter. 40 North Management is the largest position holder in the company.
Third Point made the following comment about DuPont de Nemours, Inc. (NYSE:DD) in its Q4 2022 investor letter:
“We recently increased our investment in DuPont de Nemours, Inc. (NYSE:DD), a specialty chemical company run by legendary value creator Ed Breen, who is leading a corporate transformation. In November, DuPont divested its most cyclical and lowest margin business segment, Mobility & Materials, to Celanese for $11 billion, or 14x 2023e EV/EBITDA. Following the divestiture, the improved DuPont trades at 11x 2023e EV/EBITDA, which represents a ~30% discount to its peer group.
We believe the company is laser-focused on closing this gap. First, $5 billion of the proceeds are being deployed to repurchase nearly 15% of its outstanding shares. The next significant catalyst for the stock is a potential settlement of PFAS-related multidistrict litigation in South Carolina, which remains an overhang on the stock even though DuPont’s PFAS liability was largely ring-fenced by the 2021 settlement with Chemours and Corteva. DuPont’s strong management team is eager to demonstrate the business quality of the new portfolio during the current period of economic volatility. We expect the combined catalysts of increased share repurchases, the pending resolution of legal claims, and the new business structure to drive meaningful value for shareholders.”
