Corteva (CTVA) Declined Following the Report of Business Split

Core Insights - Aristotle Capital Management's "Value Equity Strategy" reported a 4.33% gross return in Q3 2025, underperforming the Russell 1000 Value Index (5.33%) and the S&P 500 Index (8.12%) [1] - The US equity market continued to rally, with the S&P 500 Index increasing by 8.12% and the Bloomberg U.S. Aggregate Bond Index rising by 2.03% during the same quarter [1] Company Analysis: Corteva, Inc. (NYSE:CTVA) - Corteva, Inc. was identified as the largest detractor in the portfolio, with a one-month return of -12.38% and a 52-week gain of 5.02% [2][3] - The stock closed at $61.91 on October 15, 2025, with a market capitalization of $42.043 billion [2] - The market reacted negatively to the announcement of Corteva's separation of its seed and crop protection businesses, despite management's belief that this will enhance strategic focus [3] - Prior to the announcement, Corteva had been a strong contributor to the portfolio, driven by share gains in seeds and stable performance in crop protection [3] - The company's Enlist E3 platform has captured over 60% of U.S. soybean acres in under two years, with expanding adoption in corn [3] Hedge Fund Interest - As of the end of Q2 2025, 52 hedge fund portfolios held Corteva, an increase from 42 in the previous quarter [4] - Despite the potential of Corteva as an investment, certain AI stocks are viewed as offering greater upside potential and lower downside risk [4]