Where Stanley Druckenmiller Is Bullish

Last week, Duquesne Family Office LLC, managed by Stanley Druckenmiller, filed its Q3 2019 13F with the SEC. In this article, we will analyze the fund’s top holdings, buys, and sells in the third quarter. 

Top buys and fresh stake

In Q3 2019, ServiceNow (NOW), General Electric (GE), Amazon (AMZN), Shopify (SHOP), and Anaplan (PLAN) comprised Duquesne Family Office top five buys. The fund bought a fresh stake in SHOP and PLAN, which comprised 2.6% and 2.4%, respectively, of the portfolio’s publicly traded securities.

In the third quarter, Duquesne increased its stake by 139%, 153%, and 20%, respectively, in GE, NOW, and AMZN. On a year-to-date basis, these stocks have risen 58%, 56%, and 16.7%, respectively.

Duquesne also included the iShares MSCI India ETF (INDA), HDFC Bank Limited (HDB), and The Medicines Company (MDCO) in its third-quarter holdings.

Druckenmiller picked GE

Referring to GE CEO Lawrence Culp, Druckenmiller told CNBC on August 15, “I believe Culp … I bought stock today.” On the same day, GE plunged 11.3%. Whistleblower Harry Markopolos’ accusation of financial irregularities in GE was behind the decline. Since August 15, GE stock has risen 43.6%.

Top holdings

In Q3 2019, Microsoft was the largest holding of Duquesne with 3.99 million shares. Druckenmiller is a long-term bull on Microsoft. Duquesne added Microsoft in Q2 2015. MSFT has been among the fund’s top five holdings since Q1 2017.

MSFT was also one of the top holdings of Wellington Management, with 72.9 million shares in the third quarter. To learn more about Wellington Management’s Q3 2019 holdings, please read Wellington Management: Analyzing Its Top Holdings.

In Q3 2019, the other top holdings of Duquesne were Amazon, General Electric, ServiceNow, and Workday, Inc. (WDAY). These stocks constituted 10.2%, 5.2%, 5%, and 4.5%, respectively, of its portfolio of publicly traded securities.

Duquesne’s top sells and exits

Adobe (ADBE), Uber (UBER), the iShares MSCI Emerging Markets ETF (EEM), Snap (SNAP), and Netflix (NFLX) were Duquesne’s top five sells in Q3 2019. The fund decreased its holdings in ADBE, UBER, and NFLX by 94%, 93%, and 35%, respectively.

In Q2 2019, Uber was among Duquesne’s top buys. Earlier this month, Uber hit an all-time low. In fact, analysts are concerned about the company’s outlook. To learn more, read New Uber Bull Sees the Sell-Off as a Buying Opportunity. 

The growing competition in the streaming business is also a concern for NFLX. The recent Disney+ launch could cause issues for NFLX’s business.

In Q3 2019, Duquesne completely exited from EEM and SNAP. In 2019 so far, EEM has risen by 10.5%. To know more about other fund managers’ holdings, please read What Are Leon Cooperman’s Top Holdings?