Cooper Investors Global Equities Fund (Unhedged) - Cooper Investors Pty Limited on Corteva
Thesis
Corteva was initiated as a company-specific Reversionary opportunity around a corporate separation. The business is spinning off its Seeds operation from Crop Protection after its earlier creation through the Dow-DuPont merger and subsequent separation. Cooper views Seeds as a high-returning oligopoly whose quality is underappreciated inside the current structure. The separation is expected to make that value more visible and potentially unlock a rerating.
“We believe the Seeds business, a high-returning oligopoly, is under-appreciated and, hence, undervalued in the current structure.”
Key risks
- Execution of the Seeds and Crop Protection separation