Stanley Druckenmiller is usually recognized for working carefully with George Soros to “break the financial institution of England” once they shorted the pound and crashed it in 1992.
Nonetheless, Druckenmiller is a extremely achieved investor in his personal proper, and his Duquesne Capital Administration fund is among the best-performing funds in historical past. It grew from $1 million in 1981 to $23 billion by the point he closed it in 2010, producing a median annual return round 30%.
At this time, Druckenmiiller runs a household fund, Duquesne Household Workplace, and you’ll nonetheless observe his strikes by quarterly 13-F filings with the SEC. It would shock you to be taught that his portfolio is very concentrated together with his high 4 shares making up near half of his holdings.
1. Microsoft
Microsoft (NASDAQ: MSFT) was Duquesne’s greatest holding as of the top of the fourth quarter, making up 12.2% of the agency’s portfolio at $408.4 million, or 1,086,120 shares.
Duquesne added 68,860 shares of Microsoft within the fourth quarter, reinforcing his excessive conviction stance on the tech large, and the worth of that stake, assuming he is held it, has grown additional this yr.
Druckenmiller hasn’t commented on why he owns Microsoft, however there are numerous good cause to personal the inventory. Microsoft appears to be like like a no brainer choose to capitalize on the substitute intelligence (AI) growth because of its partnership with OpenAI, its diversification throughout a number of enterprise areas, and its main place in enterprise software program.
2. Coupang
Druckenmiller’s second-biggest holding may shock you. It is Coupang (NYSE: CPNG), the South Korean e-commerce large that resembles Amazon in plenty of methods.
The agency completed the yr with Coupang making up roughly 11% of the portfolio, or a $371 million place. Druckenmiller was bullish on Coupang within the fourth quarter, shopping for greater than 2 million shares of the e-commerce firm.
Coupang is an intriguing alternative because it has quite a lot of room for development because it expands to new markets and provides new product traces. The inventory additionally appears to be like well-priced for its development potential, and Coupang is leveraging AI to automate its warehouses.
3. Nvidia
Druckenmiller initially guess on the AI gold rush by going lengthy on Nvidia (NASDAQ: NVDA) within the fourth quarter of 2022. However he started to taper that guess within the fourth quarter, promoting 257,162 shares of the AI chip chief. Nonetheless, the corporate remained Duquesne’s third-largest holding on the finish of 2023.
The 617,494-share place represented 9.1% of the entire portfolio. Druckenmuller additionally held name choices for almost 500,000 shares of the inventory, giving his agency extra upside publicity.
Nvidia has turn into a well-liked guess amongst each skilled and retail traders. The enterprise has exploded over the previous yr because the inventory most carefully related to the generative AI revolution.
Druckenmiller appeared to consider Nvidia’s rally had gone far sufficient, although promoting the inventory in This autumn has proved to be shortsighted as shares are up about 75% this yr.
4. Eli Lilly
Lastly, Druckenmiller’s fourth-largest holding does not hail from the tech sector, however Eli Lilly (NYSE: LLY) is among the world’s greatest pharmaceutical corporations.
His agency held $235 million of shares on the finish of final yr, although he did promote down about 11% of his place through the fourth quarter.
Eli Lilly’s Mounjaro weight-loss drug has been a driver of the inventory’s surge over the previous yr. It is now the corporate’s top-selling drug with $1.8 billion of income final quarter.
Administration and analysts have large expectations for Mounjaro. If the weight-loss drug continues to comply with its present trajectory, the inventory ought to solely achieve from right here.
Must you comply with Druckenmiller’s lead?
Following an investor with out doing your individual analysis, even a world-renowned one, is a nasty thought. An ultra-wealthy household fund like Duquesne has assets and methods at its disposal that are not accessible to particular person traders.
That mentioned, its high holdings can nonetheless shine a light-weight on fascinating corporations. And on this case, Druckenmiller reminds us that even mature, established tech giants like Nvidia and Microsoft can ship market-beating returns because of their skill to capitalize on secular tailwinds like AI.
The Duquesne Household Workplace’s subsequent 13-F (for Q1 2024) comes out in mid-Could.
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Jeremy Bowman has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Coupang, Microsoft, and Nvidia. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and brief January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure coverage.
Practically 50% of Billionaire Stanley Druckenmiller’s Portfolio Is Invested in These 4 Shares was initially printed by The Motley Idiot