Billionaire Stan Druckenmiller’s 5 Small and Mid-Cap Stock Picks with Huge Upside Potential

4. Woodward, Inc. (NASDAQ:WWD)

Duquesne Capital’s Stake: $179 Million

Woodward, Inc. (NASDAQ:WWD) has been a mainstay in the 13F portfolio of Duquesne Capital since many quarters. The fund first disclosed a stake in the company in the fourth quarter of 2023. This position comprised over 400,000 shares. In the following quarter, the fund upped this stake by over 130%, taking share ownership to 954,000 shares. Another 10% addition in the third quarter of 2024 increased this to over a million shares. After upping this position by 15% in the following quarter, the fund has trimmed the holding since then. Filings for the fourth quarter of 2025 show that the fund owned 590,000 shares in the firm, down 6% compared to filings for the third quarter of 2025.

The smart money is currently backing Woodward, Inc. (NASDAQ:WWD) due to its unique position at the intersection of a recovering aerospace market and a massive global shift in energy infrastructure. Hedge funds are particularly bullish on Woodward’s Aerospace segment, which saw a 29% revenue surge in Q1 2026. A 50% year-over-year increase in commercial services has caught the eye of institutional investors. As global airline fleets age and utilization remains at record highs, Woodward’s proprietary control systems require constant, high-margin maintenance and parts. Hedge funds view Woodward as a safe haven defense play. With defense OEM sales up 23% in early 2026, the company is benefiting from smart defense orders and increased global military spending.