Top 5 Stock Picks of Scott Ferguson’s Sachem Head Capital

1. International Flavors & Fragrances Inc. (NYSE:IFF)

Value of Sachem Head Capital’s Stake: $972.5 million

Percentage of Sachem Head Capital’s 13F Portfolio: 25.18%

No. of Hedge Fund Holders: 52

International Flavors & Fragrances Inc. (NYSE:IFF) manufactures and sells flavors, fragrances, and cosmetics worldwide. In October, Christopher Parkinson of Mizuho initiated coverage of International Flavors & Fragrances Inc. (NYSE:IFF) stock with a Neutral rating and $54 price target.

As of the end of the second quarter, 52 hedge funds tracked by Insider Monkey owned stakes in International Flavors & Fragrances Inc. (NYSE:IFF). The total value of these stakes is $3.3 billion. This is compared to 55 hedge funds in the previous quarter with stakes worth $3.6 billion.

Rhizome Partners mentioned International Flavors & Fragrances Inc. (NYSE:IFF) in its Q1 2021 investor letter. Here is what the fund said:

“We are still getting used to the higher multiples that investors will pay for larger market cap and pure play companies such as  IFF. We do understand the market’s rationale. IFF’s products account for a small percentage of the customers’ cost while playing critical roles in the products’ performance. With some operating leverage, the company can probably grow FCF at 4-6% a year. This brings the total return close to the long-term return of the S&P 500 index of 10%. Through trial and error, we have come to appreciate how scale, higher market share, route densities, switching costs, and collaborative relationships amongst major industry players can contribute to sustained high returns on invested capital.”

See also 10 Best Stocks Under $10 to Buy Right Now and 10 Best Dividend Paying Stocks to Buy Under $50.

Follow Insider Monkey on Twitter