In this article, we will be looking at the 10 stocks that are being dumped by billionaire investor Richard Chilton. If you want to skip our detailed analysis of these stocks, Mr. Chilton’s investment philosophy, and Chilton Investment Company’s history and past performance, you can head directly to Billionaire Richard Chilton is Dumping These 5 Stocks.
Richard Chilton is an American investor, businessman, founder, chairman, and CEO of Chilton Investment Company. Mr. Chilton attended Alfred University, where he majored in finance and economics. Upon Graduating from Alfred University, Mr. Chilton joined Merrill Lynch and worked in the areas of mergers and acquisitions. In 1983, Mr. Chilton joined Alliance Capital as an analyst where he stayed until 1990. Mr. Chilton was then recruited by Allen & Company before founding his hedge fund, Chilton Investment Company, in 1992.
Richard Chilton follows an agile and value-oriented approach when it comes to investing. The billionaire adapts to changing market trends and sells or buys stocks accordingly. Chilton Investment Company targets a bottom-up approach towards investing and therefore prefers investing in stocks with relatively lower volatility to benefit from dividends and stable growth.
As of the third quarter of 2021, Chilton Investment Company has initiated positions in 33 stocks and completely exited 13 stocks. Mr. Chilton currently manages over $4.05 billion in 13F securities according to the September 13F filings. Among the top holdings of Chilton Investment Company, we have Microsoft Corporation (NASDAQ:MSFT), Mastercard Incorporated (NYSE:MA), The Home Depot, Inc. (NYSE:HD), and Costco Wholesale Corporation (NASDAQ:COST).
Richard Chilton of Chilton Investment Company
Our Methodology
We compiled this list according to Chilton Investment Company’s 13F portfolio at the end of the third quarter of 2021 and picked the stocks Mr. Chilton exited completely.
10 Stocks to Sell According to Billionaire Richard Chilton
10. RPM International Inc. (NYSE:RPM)
Number of Hedge Fund Holders: 20
RPM International Inc. (NYSE:RPM) manufactures, markets, and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide.
During the second quarter of 2021, Chilton Investment Company’s stake in RPM International Inc. (NYSE:RPM) was over $1.52 million. By the end of the third quarter of 2021, Mr. Chilton sold his stakes in the company and completely exited the stock.
This December, Evercore ISI analyst Stephen Richardson upgraded RPM International Inc. (NYSE:RPM) to Outperform from In-Line and gave the stock a $105 price target.
RPM International Inc. (NYSE:RPM) was found to be among the 13F holdings of 20 hedge funds by the end of the third quarter of 2021. The total value of these funds’ stakes in the company amounted to roughly $80.55 million.
Unlike Microsoft Corporation (NASDAQ:MSFT), Mastercard Incorporated (NYSE:MA), The Home Depot, Inc. (NYSE:HD), and Costco Wholesale Corporation (NASDAQ:COST), RPM International Inc. (NYSE:RPM) is a stock to sell according to billionaire Richard Chilton.
9. Vroom, Inc. (NASDAQ:VRM)
Number of Hedge Fund Holders: 23
Vroom, Inc. (NASDAQ:VRM) operates as an e-commerce platform for the buying and selling of new and used cars in the United States. It also offers financing solutions. The company was incorporated in 2012 and is headquartered in New York.
Mr. Chilton’s stake in Vroom, Inc. (NASDAQ:VRM) was $1.15 million in the second quarter of 2021. The investment covered 0.02% of Chilton Investment Company’s 13F portfolio. It was in the third quarter of 2021 that Mr. Chilton completely exited the stock.
By the end of the third quarter of 2021, 23 hedge funds held stakes in Vroom, Inc. (NASDAQ:VRM). The total value of these stakes was $119.03 million.
Here’s what Miller Value Partners has to say about Vroom, Inc. (NASDAQ:VRM) in their third-quarter 2021 investor letter:
“Vroom, Inc. (VRM) was down 47.31% after reporting earnings that beat expectations but disappointed on guidance. Revenue of $761.9M beat consensus of $647.4M with EBITDA of -$60.7M slightly beating consensus of -$60.9M. The company guided for total revenue of $858-$891M versus consensus of $699M, but both gross margins and EBITDA disappointed. The company’s gross margin guidance of 6.2% was well below expectations of 8.8% leading to EBITDA of -$100M to -$92M against expectations -$59.4M as the company continues to invest for growth. The company also announced the appointment of Robert Krakowiak as CFO effective immediately, with David Jones remaining with the company through the end of November.”
8. Adaptive Biotechnologies Corporation (NASDAQ:ADPT)
Number of Hedge Fund Holders: 25
Adaptive Biotechnologies Corporation (NASDAQ:ADPT), a commercial-stage company, develops an immune medicine platform for the diagnosis and treatment of various diseases. Adaptive Biotechnologies Corporation (NASDAQ:ADPT) was incorporated in 2009 and is headquartered in Seattle, Washington.
Insider Monkey spotted Adaptive Biotechnologies Corporation (NASDAQ:ADPT) on 25 hedge fund portfolios by the end of the third quarter of 2021. These hedge funds had stakes worth approximately $1.77 billion in the company.
Chilton Investment Company had completely exited the stock by the end of the third quarter of 2021. Comparing this to the second quarter, Mr. Chilton’s stake in Adaptive Biotechnologies Corporation (NASDAQ:ADPT) stood at $874,000 which accounted for 0.02% of Chilton Investment Company’s 13F portfolio.
7. Yum China Holdings, Inc. (NYSE:YUMC)
Number of Hedge Fund Holders: 30
Yum China Holdings, Inc. (NYSE:YUMC) owns, operates, and franchises restaurants in China. The company operates through two segments, KFC and Pizza Hut. In addition, the company operates franchise restaurants under the KFC, Pizza Hut, Huang Ji Huang, Taco Bell, Little Sheep, East Dawning, Lavazza, and COFFii & JOY names.
Chilton Investment Company’s stake in Yum China Holdings, Inc. (NYSE:YUMC) by the end of the second quarter of 2021 was valued at $279,000, which the fund let go of in the third quarter of 2021. By the end of the third quarter of 2021, there were 30 hedge funds that held stakes in Yum China Holdings, Inc. (NYSE:YUMC). The total value of these stakes exceeded $832.64 million.
6. Air Products & Chemicals, Inc. (NYSE:APD)
Number of Hedge Fund Holders: 32
Air Products & Chemicals, Inc. (NYSE:APD) provides atmospheric, process, and specialty gases, equipment, and services worldwide. This November, Air Products & Chemicals, Inc. (NYSE:APD) announced that its board of directors declared a quarterly cash dividend of $1.50 per share on the company’s common stock. The stock has a forward yield of 2.03%, and the dividend was payable on February 14, 2022, to shareholders of record on 3rd January 2022. The company was founded in 1940 and is headquartered in Allentown, Pennsylvania.
On November 5, Deutsche Bank analyst David Begleiter raised his price target on Air Products & Chemicals, Inc. (NYSE:APD) to $340 from $315 and reiterated a Buy rating on the shares.
By the end of the third quarter of 2021, 32 hedge funds held stakes in Air Products & Chemicals, Inc. (NYSE:APD). The total value of these stakes came out at $528.73 million. Chilton Investment Company was not one of these hedge funds, since the fund completely exited the stock in the third quarter. For the second quarter of 2021, Mr. Chilton’s stake in Air Products & Chemicals, Inc. (NYSE:APD) was valued at $1.79 million. The investment covered 0.04% of Chilton Investment Company’s 13F portfolio.
Mr. Chilton sold his stakes in Air Products & Chemicals, Inc. (NYSE:APD) by the end of the third quarter of 2021. However, the billionaire kept his stakes in Microsoft Corporation (NASDAQ:MSFT), Mastercard Incorporated (NYSE:MA), The Home Depot, Inc. (NYSE:HD) and Costco Wholesale Corporation (NASDAQ:COST).
Click to continue reading and see 5 Stocks to Sell According to Billionaire Richard Chilton.
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Disclosure. None. 10 Stocks to Sell According to Billionaire Richard Chilton is originally published on Insider Monkey.
