Where Did Stanley Druckenmiller Place His Bets?


Aug. 21 2019, Updated 1:33 p.m. ET

Stanley Druckenmiller, a billionaire hedge fund manager and the CEO and chair of Duquesne Family Office, is known for his investment strategies. Notably, he worked with legendary investor George Soros between 1988 and 2000. Also, Druckenmiller was the lead portfolio manager for Quantum Fund. His well-known investment strategies helped his firm gain strong profits.

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Stanley Druckenmiller’s top buys

In the second quarter, Stanley Druckenmiller’s top five buys were Uber Technologies (UBER), Microsoft (MSFT), Salesforce.com (CRM), PG&E (PCG), and Barrick Gold (GOLD). The firm increased its holdings in Microsoft 3.1% in the second quarter. In the first quarter, Microsoft was the firm’s biggest holding. Overall, the stock accounted for 17.68% of the portfolio in the first quarter. In the second quarter, Microsoft accounted for 20.78% in the firm’s portfolio. Goldman Sachs also recommended Microsoft as its top pick during the trade war.

So far this year, the VanEck Vectors Gold Miners ETF (GDX) has risen 36.8%. The S&P 500 Index (SPY) and gold active futures rose 15.7% and 17.7%, respectively. The current environment could push gold towards $2,000 per ounce.

Uber Technologies, Salesforce.com, PG&E, and Barrick Gold were the firm’s fresh buys in the second quarter. Notably, Barrick Gold could support the portfolio during economic turmoil. According to an Institutional Ownership report, Vanguard Group is the first large investor in Microsoft with 613 million shares in the second quarter. Stanley Druckenmiller’s Duquesne Family Office held 5.2 million shares in the second quarter.

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Top holdings

Duquesne Family Office’s top five holdings were Microsoft, Amazon, Netflix, Alibaba, and Adobe System at 20.77%, 7.05%, 5.82%, 5.22%, and 4.51%, respectively. Usually, a strong investment in major high growth technology stocks indicates that the firm is optimistic about the tech sector. The Technology Select Sector SPDR Fund (XLK) has returned 27.5% year-to-date as of Tuesday. XLK tracks the technology sector’s performance. The firm reduced its position in Netflix and Adobe sequentially. However, the firm raised its stake in the other three companies.

Top sells

Duquesne Family Office’s top five sells in the second quarter were the iShares MSCI Emerging Markets ETF (EEM), the iShares Nasdaq Biotechnology ETF (IBB), Alphabet (GOOGL), Intuitive Surgical, and T-Mobile (TMUS). The firm reduced nearly 5.68%, 2.56%, 2.49%, 2.16%, and 2.15%, respectively, of the holdings from its portfolio. The trade war impacted EEM’s performance. The emerging market’s performance might be impacted by more escalation. According to Goldman Sachs, Alphabet might be a good pick amid the trade war.


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