In this article, we discuss the 10 new stock picks of billionaire Stanley Druckenmiller. If you want to skip our detailed analysis of these stocks, go directly to the 5 New Stock Picks of Billionaire Stanley Druckenmiller.
In May this year, Stanley Druckenmiller, the chief of Duquesne Capital, had warned that the stimulus efforts of the Federal Reserve were inflating a massive asset bubble and putting the status of the United States Dollar as the global reserve currency at risk. Earlier, the billionaire investor, during an interview with CNBC, had said that he expected to cash out on his equity investments in the near future, suggesting that cryptocurrencies could soon usurp the dollar in value across the world, with Bitcoin, the most popular coin, leading this revolution.
Druckenmiller recently attended the Boston Investment Conference and outlined his thoughts on the overall market situation, saying that there was a massive bubble around crypto, meme stocks, and art. The investor added that even though the bubble was paying off for a lot of “geniuses” in the short-term, it would prove to be a “disaster” for them in the long-term. Druckenmiller has a personal net worth of close to $7 billion and is widely respected in the finance world with regards to his expertise in growth sectors of the economy.
Investors who want further insight into the philosophy of Druckenmiller should check out his latest moves at the market. Securities filings show that Duquesne Capital had a portfolio value of $3 billion at the end of the third quarter of 2021, down from $4 billion at the end of the second quarter. Between June and September, the fund made new purchases in 14 stocks, sold out of 14, made additional purchases in 9, and reduced holdings in 19 equities. Some of the top stocks in the portfolio included Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), among others discussed in detail below.
Our Methodology
These were picked from the investment portfolio of Duquesne Capital at the end of the third quarter of 2021. All the stocks listed below were added to the portfolio of the fund between June and September this year.
The hedge fund sentiment around each stock was calculated using the data of 873 hedge funds tracked by Insider Monkey.
New Stock Picks of Billionaire Stanley Druckenmiller
10. AbCellera Biologics Inc. (NASDAQ:ABCL)
Number of Hedge Fund Holders: 18
AbCellera Biologics Inc. (NASDAQ:ABCL) owns and runs an artificial intelligence-powered drug discovery platform. In September, the firm had announced a partnership with Everest Medicines, a late-stage biotech firm, for the discovery of therapeutic antibodies with an initial focus on oncology targets.
Latest data shows that Duquesne Capital owned 659,750 shares of AbCellera Biologics Inc. (NASDAQ:ABCL) at the end of the third quarter of 2021 worth $13.2 million, representing 0.42% of the portfolio.
At the end of the second quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $773 million in AbCellera Biologics Inc. (NASDAQ:ABCL), down from 20 the preceding quarter worth $1.8 billion.
Just like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), AbCellera Biologics Inc. (NASDAQ:ABCL) is one of the stocks attracting the attention of elite investors.
9. Confluent, Inc. (NASDAQ:CFLT)
Number of Hedge Fund Holders: 30
Confluent, Inc. (NASDAQ:CFLT) is an application software firm that offers cloud services related to the data-in-motion technology. According to regulatory filings, Duquesne Capital owned 140,300 shares in the company at the end of September 2021 worth $8.3 million.
Credit Suisse analyst Phil Winslow recently initiated coverage of Confluent, Inc. (NASDAQ:CFLT) stock with an Outperform rating and a price target of $115, noting the firm would benefit from enterprise adoption of the cloud in the coming months.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based firm Lone Pine Capital is a leading shareholder in Confluent, Inc. (NASDAQ:CFLT) with 3.6 million shares worth more than $172 million.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Confluent, Inc. (NASDAQ:CFLT) was one of them. Here is what the fund said:
“The new issue market remains an attractive source of new ideas and we participated in four IPOs in the latest period. Confluent sells and distributes a commercialized version of open source software called Kafka created by former executives at LinkedIn. The solution allows enterprise users the ability to capture data in real time as it is streaming. A prime use case is capturing real-time inventory across retail stores and distribution centers to enable omni-channel commerce. We believe it is early days in the company’s commercialization of this technology which can capture data in both on-premise and hybrid cloud environments. Global-e Online, meanwhile, removes many of the frictions around cross-border ecommerce by handling the different tax structures, languages, currencies, local logistics and fulfillment/returns for any size retailer. The company’s initial customers have been mostly mid to higher end retailers but an investment by Shopify should enable Global-e to significantly increase merchant reach.”
8. Fastly, Inc. (NYSE:FSLY)
Number of Hedge Fund Holders: 24
Fastly, Inc. (NYSE:FSLY) is a California-based internet services and infrastructure focusing on cloud tech. The firm recently posted earnings for the third quarter, beating market estimates on earnings per share by $0.07 and on revenue by $3.2 million.
The hedge fund of billionaire Stanley Druckenmiller owned over 257,695 shares of Fastly, Inc. (NYSE:FSLY) at the end of the third quarter of 2021 worth more than $10.4 million, representing 0.33% of the portfolio.
At the end of the second quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Fastly, Inc. (NYSE:FSLY), down from 26 in the preceding quarter worth $1.3 billion.
7. Lithia Motors, Inc. (NYSE:LAD)
Number of Hedge Fund Holders: 63
Lithia Motors, Inc. (NYSE:LAD) is an automotive retailer headquartered in Oregon. Duquesne Capital owned 29,081 shares in the company at the end of September 2021 worth $9.2 million, representing 0.29% of the portfolio of the fund.
Lithia Motors, Inc. (NYSE:LAD) has an impressive dividend history and recently declared a quarterly dividend of $0.35 per share, in line with previous. The firm has a market cap of more than $9 billion and posted $13 billion in revenue last year.
At the end of the second quarter of 2021, 63 hedge funds in the database of Insider Monkey held stakes worth $2.9 billion in Lithia Motors, Inc. (NYSE:LAD), up from 40 in the preceding quarter worth $2.3 billion.
6. Live Nation Entertainment, Inc. (NYSE:LYV)
Number of Hedge Fund Holders: 40
Live Nation Entertainment, Inc. (NYSE:LYV) offers entertainment services like concerts, ticketing, sponsorship, and advertising, among others. The firm recently smashed analyst expectations on earnings per share and revenue for the third quarter but the stock has slipped in value amid a lawsuit involving a concert tragedy in Texas.
Latest securities filings reveal that Duquesne Capital owned 427,750 shares in Live Nation Entertainment, Inc. (NYSE:LYV) at the end of the third quarter of 2021 worth $38 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Select Equity Group is a leading shareholder in Live Nation Entertainment, Inc. (NYSE:LYV) with 3 million shares worth more than $264 million.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Live Nation Entertainment, Inc. (NYSE:LYV) is one of the stocks that hedge funds are buying.
In its Q4 2020 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Live Nation Entertainment, Inc. (NYSE:LYV) was one of them. Here is what the fund said:
“In 2006, we initiated our position in Live Nation, the global entertainment company that handles promotion, venue management and ticket sales for live events. Live Nation was spun out of the former Clear Channel Communications in late 2005. In our view, spinoffs often represent attractive opportunities because investors frequently undervalue the new company. We believed this was the case with Live Nation, especially given its initially small market capitalization. As well, when spinoffs are freed from their parents, they typically benefit from intensified management focus and more flexible capital allocation policies. In Live Nation’s case, the spinoff helped make possible the merger with Ticketmaster in 2010, which materially improved the business franchise. Although these factors alone might have made Live Nation a good holding for the Fund, an unexpected technology helped to boost the company’s fortunes: streaming. As the advantages of streaming convinced consumers to reduce or even eliminate their purchases of media, such as CDs and DVDs, artists began to tour more, thereby providing a tailwind to Live Nation’s operations. This accelerated growth in the company’s intrinsic value per share, which in turn generated numerous increases in our sell target for the holding, enabling us to continue to own the shares in the Fund for 14 years. We typically target a three- to five-year holding period for our equity investments, but we love opportunities like Live Nation, which achieve unanticipated intrinsic value growth.”
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Disclosure. None. 10 New Stock Picks of Billionaire Stanley Druckenmiller is originally published on Insider Monkey.
