Third Point, a New York-based investment advisor, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The Third Point Offshore Fund returned 1.2% net in the fourth quarter compared to a 7.5% return for the S&P 500 INDEX (TR) and a 9.9% return for the MSCI WORLD INDEX (TR). Defensive portfolio orientation, weakness in several large positions, and write-offs/ markdowns in crypto-related private investments impacted the fund’s performance in the quarter relative to indexes. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Third Point highlighted stocks like DuPont de Nemours, Inc. (NYSE:DD) in the fourth quarter investor letter. Headquartered in Wilmington, Delaware, DuPont de Nemours, Inc. (NYSE:DD) is a technology-based materials and solutions provider. On February 13, 2023, DuPont de Nemours, Inc. (NYSE:DD) stock closed at $76.37 per share. One-month return of DuPont de Nemours, Inc. (NYSE:DD) was 2.74%, and its shares lost 6.49% of their value over the last 52 weeks. DuPont de Nemours, Inc. (NYSE:DD) has a market capitalization of $34.987 billion.
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.”
Photo by L N on Unsplash
DuPont de Nemours, Inc. (NYSE:DD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held DuPont de Nemours, Inc. (NYSE:DD) at the end of the third quarter, which was 44 in the previous quarter.
We discussed DuPont de Nemours, Inc. (NYSE:DD) in another article and shared the list of most promising hydrogen and fuel cell stocks to buy now according to analysts. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 23 Best Countries in the World to Live in if You’re a Woman
- 15 Countries that Produce the Best Athletes in the World
- 11 Most Profitable Cheap Stocks to Buy
Disclosure: None. This article is originally published at Insider Monkey.
