Billionaire Stanley Druckenmiller’s New Bets On Basic Materials

Dow Chemical Co (NYSE:DOW) is another new addition to Duquesne’s porftolio, with Druckenmiller having bought 1.16 million shares worth $59.5 million. Among the hedge funds we track, Third Point, run by Dan Loeb, holds the biggest position in this company of 23.0 million shares, up by 5% during the second quarter. Stanley Druckenmiller’s former boss, George Soros, also holds a significant position, which was boosted by 5% to 4.86 million shares valued at $248 million. Down by 10% so far this year, Dow Chemical Co (NYSE:DOW) had reached a high of $53.77 in June before tumbling to a current price of $41.07. Dow Chemical Co (NYSE:DOW) has a market cap of $46.3 billion and pays an annual dividend of $1.63, carrying a yield of 4.00%. The stock is trading at a trailing Price to Earnings (P/E) ratio of 11.66, significantly lower than the industry average of 19.60.

Druckenmiller also sees some great upside potential in Alcoa Inc (NYSE:AA) and has built a position that amasses 3.65 million shares worth approximately $40.7 million. The latest financial results from the company have been disappointing, with it having registered revenues of $5.89 billion, nearly half the figure reported for the same period of last year. Earnings per share have also been squeezed and amount to $0.21, down by 21% year-over-year. This poor performance is reflected in the stock’s movement, down by 47% so far in 2015. The weakness in aluminum prices has had a significant impact on Alcoa Inc (NYSE:AA)’s bottom line, but has also prompted its management to engage in a transformation of the company, diversifying its business segments and focus onto its aerospace and auto businesses. This move has prompted a large number of hedge funds to go long on Alcoa Inc (NYSE:AA), with Ken Griffin and George Soros among the top investors who are betting big on the stock. Griffin’s Citadel Investment Group holds 5.71 million shares, up by 133% during the second quarter of 2015, while Soros Fund Management has built a position that comprises 5.34 million shares, worth approximately $59.5 million.

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