After selling Dow DuPoint in early 2019 as it reached our appraisal value, we initiated a new position in DuPont (DD, Financial) in February and added heavily during the March sell-off. After spinning its commodity chemicals business Dow in April 2019 and its seeds and agriculture chemicals business Corteva in June 2019, DuPont has a collection of high-return assets in nutrition, electronics and construction. CEO Ed Breen has a strong history of smart capital allocation, cost cutting and value additive M&A activity, and we believe he can lead the company effectively through this difficult period. We were especially encouraged by the announcement late last year that DuPont is spin-merging its Nutrition segment with International Flavors and Fragrances, creating a powerhouse business and improving DuPont’s balance sheet even further when the deal closes later this year.
From Mason Hawkins (Trades, Portfolio)' Longleaf Partners first-quarter 2020 commentary.
