In this article we will take a look at whether hedge funds think DuPont de Nemours Inc (NYSE:DD) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably, but their consensus stock picks historically outperformed the market after adjusting for known risk factors.
Is DuPont de Nemours Inc (NYSE:DD) worth your attention right now? Investors who are in the know were selling. The number of bullish hedge fund positions decreased by 1 lately. DuPont de Nemours Inc (NYSE:DD) was in 60 hedge funds’ portfolios at the end of December. The all time high for this statistic is 82. Our calculations also showed that DD isn’t among the 30 most popular stocks among hedge funds (click for Q4 rankings). There were 61 hedge funds in our database with DD holdings at the end of September.
In today’s marketplace there are tons of gauges shareholders can use to grade publicly traded companies. Two of the most underrated gauges are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the best picks of the best money managers can outclass the market by a significant amount (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 197% since March 2017 (through March 2021) and beat the S&P 500 Index by 124 percentage points. You can download a sample issue of this newsletter on our website .
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind we’re going to go over the new hedge fund action surrounding DuPont de Nemours Inc (NYSE:DD).
Do Hedge Funds Think DD Is A Good Stock To Buy Now?
At fourth quarter’s end, a total of 60 of the hedge funds tracked by Insider Monkey were long this stock, a change of -2% from one quarter earlier. On the other hand, there were a total of 68 hedge funds with a bullish position in DD a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, David S. Winter and David J. Millstone’s 40 North Management has the largest position in DuPont de Nemours Inc (NYSE:DD), worth close to $1.4411 billion, amounting to 43.4% of its total 13F portfolio. The second largest stake is held by Ursa Fund Management, managed by Andrew Hahn, which holds a $702.7 million position; the fund has 43.7% of its 13F portfolio invested in the stock. Remaining peers with similar optimism comprise Ken Griffin’s Citadel Investment Group, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw. In terms of the portfolio weights assigned to each position Ursa Fund Management allocated the biggest weight to DuPont de Nemours Inc (NYSE:DD), around 43.73% of its 13F portfolio. 40 North Management is also relatively very bullish on the stock, dishing out 43.43 percent of its 13F equity portfolio to DD.
Judging by the fact that DuPont de Nemours Inc (NYSE:DD) has experienced bearish sentiment from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of hedge funds that slashed their positions entirely by the end of the fourth quarter. Interestingly, Zach Schreiber’s Point State Capital dropped the biggest position of the 750 funds followed by Insider Monkey, comprising close to $75.9 million in stock. Eli Samaha’s fund, Madison Avenue Partners, also sold off its stock, about $37.5 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 1 funds by the end of the fourth quarter.
Let’s also examine hedge fund activity in other stocks similar to DuPont de Nemours Inc (NYSE:DD). We will take a look at Regeneron Pharmaceuticals Inc (NASDAQ:REGN), Dollar General Corp. (NYSE:DG), ICICI Bank Limited (NYSE:IBN), Boston Scientific Corporation (NYSE:BSX), Northrop Grumman Corporation (NYSE:NOC), UBS Group AG (NYSE:UBS), and Southern Copper Corporation (NYSE:SCCO). This group of stocks’ market caps match DD’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
View table here if you experience formatting issues.
As you can see these stocks had an average of 38.7 hedge funds with bullish positions and the average amount invested in these stocks was $1427 million. That figure was $6277 million in DD’s case. Boston Scientific Corporation (NYSE:BSX) is the most popular stock in this table. On the other hand UBS Group AG (NYSE:UBS) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks DuPont de Nemours Inc (NYSE:DD) is more popular among hedge funds. Our overall hedge fund sentiment score for DD is 76. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 10 most popular stocks among hedge funds returned 90.7% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 35 percentage points. These stocks gained 13.6% in 2021 through April 30th and still beat the market by 1.6 percentage points. Unfortunately DD wasn’t nearly as popular as these 10 stocks and hedge funds that were betting on DD were disappointed as the stock returned 8.9% since the end of the fourth quarter (through 4/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.
Follow Dupont (Old Filings) (NYSE:DD)
Follow Dupont (Old Filings) (NYSE:DD)
Disclosure: None. This article was originally published at Insider Monkey.