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“DuPont Will Likely Emerge Much Stronger in 2021” Says Rhizome Partners

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Jose Karlo Mari Tottoc
·3 min read
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Rhizome Partners, a long-term capital investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A net return of 18.2% was recorded by the fund for the Q4 of 2020, outperforming its S&P 500 benchmark that delivered a 12.2% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Rhizome Partners, in their Q4 2020 Investor Letter, said that DuPont de Nemours, Inc. (NYSE: DD) will likely execute better results this 2021. DuPont de Nemours, Inc. is a technology-based, electronics, safety, and transportation solutions provider that currently has a $37.5 billion market cap. For the past 3 months, DD delivered a decent 11.57% return and settled at $69.79 per share at the closing of February 19th.

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

"DuPont is expected to merge its Nutrition and Bioscience business with International Flavors and Fragrances in early 2021. Auto sales and industrials, an area of weakness for DuPont earlier in 2020 will likely emerge much stronger in 2021. We believe these two factors have helped drive shares to over $71 at the end of Q4. Dupont has also been shedding non-core businesses with lower ROIC and growth prospects. The remaining segments are more pure-play and focused. Corteva, the previous DuPont agricultural focused spinoff, was recently targeted by activist investor Starboard Value which led to year-end price gains."

E I Du Pont De Nemours And Co (DD), NYSE:DD, Yahoo Finance, Hedge Fund:163, Nelson Peltz, Trian Partners
E I Du Pont De Nemours And Co (DD), NYSE:DD, Yahoo Finance, Hedge Fund:163, Nelson Peltz, Trian Partners

Pixabay/Public Domain

Last December, we published an article telling that DuPont de Nemours, Inc. (NYSE: DD) was in 61 hedge fund portfolios. Its all time high statistics is 82. DD delivered a 33.11% return in the past 12 months.

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.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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.

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy 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 website:

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