Billionaire Stanley Druckenmiller’s Cheap Stock Picks Include D.R. Horton, Inc. (DHI)

Boykin Curry’s Eagle Capital Management had 2.5 million shares in its portfolio according to that fund’s own 13F.

Due to their historical tendency to go bankrupt, markets generally value airlines at low earnings multiples, and US Airways Group Inc (NYSE:LCC) is no exception at a forward P/E of only 6. Druckenmiller owned 1.2 million shares of the stock at the end of Q1. US Airways is planning to acquire American Airlines, which poses integration risks but has lifted airline stocks somewhat as some investors believe that a consolidating industry will lead to more pricing power. We’d mentioned Soros earlier; his hedge fund most recently disclosed ownership of 7.8 million shares of US Airways (check out Soros’s stock picks).

Between January and March, Druckenmiller initiated a position of about 320,000 shares in PBF Energy Inc (NYSE:PBF), an oil and gas refining and marketing company with a market cap of about $530 million (with an average of over 1 million shares traded per day, so there is plenty of dollar volume for most investors). Midstream oil and gas companies are also generally cheap, and PBF’s forward earnings multiple is low even for the industry at 6. However, many market players are bearish and as a result a quarter of PBF’s float is held short.

Disclosure: I own no shares of any stocks mentioned in this article.