Institutional ticker directory tracking stock mentions, long/short ideas, and high-conviction pitches extracted from quarterly hedge fund letters.
| Ticker | Company | Sector | Industry | Pitches | Stance |
|---|---|---|---|---|---|
| Fund / Manager | Thesis Excerpt | Stance | Period / Date | Action |
|---|---|---|---|---|
BBH Select Series - Mid Cap Fund Timothy F. Harris | “Darling returned -11.7% during the quarter, ending with a weight of 4.0% after trimming the position early in the quarter on strength. Darling is the global leader in rendering animal byproducts and used cooking oil into fats and proteins for a variety of end uses, including animal feed, specialty health products, and renewable diesel through a joint venture with Valero called Diamond Green Diesel (DGD). Darling reported stronger than expected first quarter 2026 results, driven by better performance in the core Feed and Food segments, as well as stronger margins at DGD. Notwithstanding lower oil prices at quarter-end, Darling is extremely well-positioned for significantly improved profitability, with long-awaited certainty on government mandates finalized at the end of first quarter 2026, which will support both margins at DGD and higher Feed prices. These end markets are further benefiting from higher prices as a result of the recent conflict in the Middle East. The full benefit of recent development will start to be apparent in second quarter 2026.” | NEUTRAL | Q2 2026 Jul 30, 2026 | View Pitch |
SouthernSun SMID Cap Michael W. Cook | “Darling Ingredients Inc (DAR) was a bottom contributor in the Small Cap strategy during the second quarter after being a top contributor during the first, up nearly 65% through March 31. DAR is the largest publicly traded company turning edible by-products into sustainable products and a leading producer of renewable energy. DAR's fundamentally improved earnings trajectory following the robust EPA mandates on renewable fuel volumes remains intact, and the business is performing well. The modest decline in the share price in Q2 largely reflected the pending resolution(s) of the Iran military conflict, which brought nonrenewable fuel prices down meaningfully. For reference, Crude Oil Futures were down nearly 40% in the second quarter, and DAR declined partly due to the substitution value of renewables being incrementally less for aviation fuel, in particular. That said, the DAR volume picture for the year is not impacted meaningfully by exogenous factors like the price of oil and is rather determined by the minimum volume requirements from the RVO and the growth of DAR's other business lines. We remain optimistic on DAR's business prospects and believe shares remain underpriced relative to both the near-term and long-term earnings power of the company.” | BULL | Q2 2026 Jul 22, 2026 | View Pitch |
SouthernSun Small Cap Michael W. Cook | “Darling Ingredients Inc (DAR) was a bottom contributor in the Small Cap strategy during the second quarter after being a top contributor during the first, up nearly 65% through March 31. DAR is the largest publicly traded company turning edible by-products into sustainable products and a leading producer of renewable energy. DAR's fundamentally improved earnings trajectory following the robust EPA mandates on renewable fuel volumes remains intact, and the business is performing well. The modest decline in the share price in Q2 largely reflected the pending resolution(s) of the Iran military conflict, which brought nonrenewable fuel prices down meaningfully. For reference, Crude Oil Futures were down nearly 40% in the second quarter, and DAR declined partly due to the substitution value of renewables being incrementally less for aviation fuel, in particular. That said, the DAR volume picture for the year is not impacted meaningfully by exogenous factors like the price of oil and is rather determined by the minimum volume requirements from the RVO and the growth of DAR's other business lines. We remain optimistic on DAR's business prospects and believe shares remain underpriced relative to both the near-term and long-term earnings power of the company.” | BULL | Q2 2026 Jul 22, 2026 | View Pitch |
SouthernSun SMID Cap Michael W. Cook | “Darling Ingredients (DAR) was a top contributor in the SMID Cap strategy in the fourth quarter. DAR is the largest publicly traded company turning edible by-products and food waste into sustainable products and a leading producer of renewable energy. Darling has faced significant headwinds over the past couple of years, and the stock traded within a fairly tight range of $30-40 over the past twelve months. This downturn is, in our opinion, at or near a bottom. We see several fundamental and regulatory changes supporting our view that top line and bottom-line results will inflect higher in 2026. Recent announcements from Washington and from the company are supportive of our view. The base Food and Feed businesses are providing support for the struggling Fuel business – a natural hedge we have long discussed. In addition, the company's vertically integrated supply chain and low-cost position have proven resilient in the face of such headwinds. We expect results for 4q25 to be challenged and believe this reality is accounted for in today's share price. As the cycle turns, the operational improvements made over the past couple of years together with an upgraded asset base will, in our opinion, provide a boost to operating profitability and discretionary cash flow. While frustrated with the performance over the past couple of years, we were pleased to see stabilization in the business and the stock price in recent quarters and believe some meaningful relief is on the horizon. BSD Analysis: Darling is the undisputed heavyweight of the "Waste-to-Wealth" cycle, turning animal byproducts into the low-carbon fuel that the airline industry is desperate for. Their Diamond Green Diesel joint venture is a literal goldmine in 2026, benefiting from a massive spike in Sustainable Aviation Fuel (SAF) mandates across Europe and the U.S. While commodity price swings create volatility, the firm's vertical integration from slaughterhouse to fuel pump provides a moat that competitors can't touch. It's a messy business with a beautiful bottom line, acting as the ultimate ESG-friendly engine for the global energy transition.” | BULL | Q4 2025 Dec 31, 2025 | View Pitch |
SouthernSun Small Cap Michael W. Cook | “Darling Ingredients (DAR) was a top contributor in the Small Cap strategy in the fourth quarter. DAR is the largest publicly traded company turning edible by-products and food waste into sustainable products and a leading producer of renewable energy. Darling has faced significant headwinds over the past couple of years, and the stock traded within a fairly tight range of $30-40 over the past twelve months. This downturn is, in our opinion, at or near a bottom. We see several fundamental and regulatory changes supporting our view that top line and bottom-line results will inflect higher in 2026. Recent announcements from Washington and from the company are supportive of our view. The base Food and Feed businesses are providing support for the struggling Fuel business – a natural hedge we have long discussed. In addition, the company's vertically integrated supply chain and low-cost position have proven resilient in the face of such headwinds. We expect results for 4q25 to be challenged and believe this reality is accounted for in today's share price. As the cycle turns, the operational improvements made over the past couple of years together with an upgraded asset base will, in our opinion, provide a boost to operating profitability and discretionary cash flow. While frustrated with the performance over the past couple of years, we were pleased to see stabilization in the business and the stock price in recent quarters and believe some meaningful relief is on the horizon. BSD Analysis: Darling monetizes waste streams and turns them into fuel, feed, and specialty ingredients, which is a better business than it sounds. Demand is tied to food production and renewable diesel mandates, not discretionary consumer cycles. Investors fixate on biofuel policy volatility and miss the structural scarcity of feedstock. Integration across collection and processing creates cost advantages competitors struggle to replicate. Cash flow swings with commodity spreads, but asset relevance remains intact. Capital discipline determines upside capture. This is circular-economy infrastructure with real operating leverage.” | BULL | Q4 2025 Dec 31, 2025 | View Pitch |
SouthernSun Small Cap Michael W. Cook | “Darling Ingredients (DAR) was the top detractor in the Small Cap strategy in the third quarter after being a top contributor in the second quarter. DAR is the largest publicly traded company turning edible by-products and food waste into sustainable products and a leading producer of renewable energy. DAR has faced significant headwinds which have affected the share price for the past 2 years. This downturn is, in our opinion, at or near a bottom. We see several fundamental and regulatory changes supporting our view that top line and bottom-line results will inflect higher in 2026. Recent announcements from DC and from the company are supportive of our view. The base Food and Feed businesses are providing significant support for the struggling Fuel business – a natural hedge we have long discussed. In addition, the company's vertically integrated supply chain and low-cost position have proven resilient in the face of such headwinds. We expect results for the remainder of 2025 to be challenged and believe this reality is more than accounted for in today's share price. As the cycle turns, the operational improvements made the past couple of years together with an upgraded asset base will, in our opinion, provide a substantial boost to operating profitability and discretionary cash flow. While frustrated with the recent performance, we do believe some meaningful relief is on the horizon. BSD Analysis: Darling sits near cyclical trough with improving fundamentals. Regulatory clarity around renewable fuel credits and demand recovery in sustainable feedstocks should drive margin normalization. Strong vertical integration and cash generation from food/feed units cushion volatility. With FCF yield in mid-teens and leverage manageable, upside potential outweighs near-term weakness.” | BULL | Q3 2025 Sep 30, 2025 | View Pitch |
SouthernSun SMID Cap Michael W. Cook | “DAR has faced significant headwinds which have affected the share price for the past 2 years. This downturn is, in our opinion, at or near a bottom. We see several fundamental and regulatory changes supporting our view that top-line and bottom-line results will inflect higher in 2026. Recent announcements from DC and from the company are supportive of our view. The base Food and Feed businesses are providing significant support for the struggling Fuel business – a natural hedge we have long discussed. In addition, the company's vertically integrated supply chain and low-cost position have proven resilient in the face of such headwinds. We expect results for the remainder of 2025 to be challenged and believe this reality is more than accounted for in today's share price. As the cycle turns, the operational improvements made the past couple of years together with an upgraded asset base will, in our opinion, provide a substantial boost to operating profitability and discretionary cash flow. While frustrated with the recent performance, we do believe some meaningful relief is on the horizon. BSD Analysis: SouthernSun's bullish stance reflects conviction in Darling's cyclical trough. With diversified feed and fuel exposure, vertical integration, and regulatory catalysts, margins should expand in 2026. The firm trades at ~7x EBITDA with strong FCF optionality.” | BULL | Q3 2025 Sep 30, 2025 | View Pitch |
FPA Queens Road Small Cap Value Fund Steve Scruggs | “Darling Ingredients commands scale advantages in rendering and renewable diesel, though recent commodity price declines and acquisition leverage have weighed on stock performance. At ~10x normal earnings, the fund maintains a mid-sized position based on long-term execution and low valuation.” | BULL | Q2 2024 Jun 30, 2024 | View Pitch |
Each excerpt above is the manager's commentary on this ticker specifically. The full letter has the rest of their portfolio thinking, risk discussion, and broader institutional context.