Hardman Johnston Global Equity Sold Corteva (CTVA) as It Failed to Observe a Clear Value-Creation Rationale

In its fourth-quarter 2025 capitalist letter, Hardman Johnston Global Equity Strategy highlighted Corteva, Inc. (NYSE:CTVA). Corteva, Inc. (NYSE:CTVA) is an agriculture institution that operates successful the Seed and Crop Protection segments. The one-month instrumentality of Corteva, Inc. (NYSE:CTVA) was 8.91%, and its shares gained 12.31% of their worth implicit the past 52 weeks. On January 27, 2026, Corteva, Inc. (NYSE:CTVA) banal closed astatine $73.00 per share, with a marketplace capitalization of $49.33 billion.

Hardman Johnston Global Equity Strategy stated the pursuing regarding Corteva, Inc. (NYSE:CTVA) successful its 4th fourth 2025 capitalist letter:

"During the 4th we liquidated Corteva, Inc. (NYSE:CTVA), T-Mobile US, Inc. and Vertex Pharmaceuticals Inc. We exited our presumption successful Corteva Inc. pursuing absorption commentary astir a imaginable separation of the Seeds and Crop Protection businesses, arsenic we conflict to spot a wide value-creation rationale fixed Corteva already trades astatine 1 of the richer multiples successful the ag/chem adjacent group. While the Seeds concern (c. two-thirds of profits) whitethorn bid a premium multiple, this would apt beryllium offset by a materially little valuation for the Chemicals business, resulting successful constricted nett worth unlock. The separation communicative besides raises strategical credibility concerns, arsenic it appears inconsistent with anterior absorption messaging astir the complementary quality of Seeds and Chemicals connected a azygous platform, arsenic good arsenic the semipermanent maturation imaginable of higher-margin areas specified arsenic biologicals wrong Crop Protection. WSJ commentary suggesting a separation could beryllium aimed astatine insulating the Seeds franchise from imaginable liabilities successful the Chemicals concern introduces further uncertainty. At the aforesaid time, end-market fundamentals are becoming little supportive. U.S. maize acreage has risen to highest levels, expanding the hazard of a crisp terms correction if proviso proves hard to absorb, portion soybean markets besides look challenges fixed their reliance connected exports and little request from China. Depressed workplace economics implicit a prolonged play could unit husbandman spending connected inputs. Taken unneurotic — elevated valuation, strategical uncertainty, and deteriorating cultivation fundamentals — we viewed the risk-reward arsenic little compelling and chose to exit the position. We volition beryllium watching developments intimately arsenic the Seeds concern is simply a genuinely unsocial franchise with precocious introduction barriers and technological innovation."