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Artisan Value Fund on DuPont (DD): “We Sold in Favor of Better Opportunities”

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Artisan Partners Limited Partnership, a high value-added investment management firm, published its ‘Artisan Value Fund’ fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 20% was recorded by its Investor Class: ARTLX, 20.05% by its Advisor Class: APDLX, and 20.07% by its Institutional Class: APHLX, in the fourth quarter of 2020, all outperformed its Russell 1000 Value Benchmark that delivered a 16.25% return and its Russel 1000 Index that was up by 13.69% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Artisan Value 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 $41.2 billion market capitalization. Since the beginning of the year, DD delivered an 8.42% return, impressively extending its 12-month gains to 145%. As of March 18, 2021, the stock closed at $78.37 per share.

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

"DuPont de Nemours operates as a holding company engaged in the development of specialty materials, chemicals and agricultural products. It operates through the following segments: electronics and imaging; nutrition and biosciences; transportation and industrial; safety and construction and non-core. We believe DuPont de Nemours has strong fundamentals, but the margin of safety deteriorated due to the lingering effects of trade wars and separation charges related to the sale of its nutrition and bioscience division to International Flavors & Fragrances. We sold in favor of better opportunities."

Courtesy of DuPont

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 8.09% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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