In this article, we will take a look at the top 10 stock picks of billionaire Stanley Druckenmiller.
Druckenmiller on the Fed’s Actions
On November 6, billionaire Stanley Druckenmiller appeared in a podcast, In Good Company, hosted by Nicolai Tangen, CEO of Norges Bank Investment Management. Druckenmiller shared his opinion on the easing cycle and the role of the Fed in the current economic backdrop. He shared that he is primarily keeping a close look at companies and is not seeing any signs of weakness, other than the housing market, that too because of elevated price levels. He also added that for the next 3 to 6 months, he does not expect any economic problems to overshadow the market.
Druckenmiller emphasized that the financial conditions are of more interest to him and that they have been very “loose, looser than they were when the Fed actually started tightening.” He is also particularly interested to see if the market is currently in the “70s rally since 2021” when the inflationary period started, expressing his concerns over inflation moving forward. In addition to inflationary concerns, Druckenmiller is also worried that the Fed had declared victory a tad bit early, lacking confidence in the current market backdrop.
He believes that with a 50 basis point cut, roaring equities, and no material weakness, the market may turn up again. Druckenmiller added that the Fed is “obsessed” with a soft landing and emphasized that “fine-tuning” and “worrying about a soft landing” is not their job. The reason why there is an urgency for a soft landing is because the Fed let the inflation rate jump in the first place, he added. Speaking of the Fed’s actions and forward guidance, Druckenmiller highlighted that the Fed believes that if it changes its due course of action, it may lose credibility, leaving its hands tied.
Stanley Druckenmiller is an American billionaire, investor, and founder of Duquesne Capital, with a net worth of $6.9 billion, as of December 14, 2024. Druckenmiller has made a fortune as a hedge fund manager for 30 big years and now manages money from his family office. He also worked with George Soros until 2000, a renowned investor known for shorting the pound in 1992. He also shares interesting opinions on the money market and the economy. In Q3 2024, Druckenmiller initiated 33 new positions, ending the quarter with a portfolio of $2.95 billion in 13F securities. With that, let’s discuss his top stock picks as of Q3 2024.
Stanley Druckenmiller of Duquesne Capital
Our Methodology
We scanned Duquesne Capital’s Q3 2024 portfolio and picked the fund’s top 13F holdings. Additionally, we’ve also added overall hedge fund sentiment for each stock, as of Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Billionaire Stanley Druckenmiller’s Top 10 Stock Picks
10. Kinder Morgan, Inc. (NYSE:KMI)
Duquesne Capital’s Stake Value: $57,699,000
Number of Hedge Fund Holders: 42
Kinder Morgan, Inc. (NYSE:KMI) ranks 10th on our list of Stanley Druckenmiller’s top stock picks. KMI is one of the largest energy infrastructure companies in North America with nearly 79,000 miles of pipelines and 139 terminals. These pipelines carry natural gas, gasoline, crude oil, carbon dioxide, and much more. Its terminals manage renewable fuels, petroleum products, chemicals, and other products. As of today, the company transports almost 40% of the natural gas produced in the United States, evidence of its position in the industry.
The global energy transition from coal to natural gas is expected to reduce global emissions by 17% by 2050, and KMI is contributing to the goal. As per its 2023 sustainability report, Kinder Morgan, Inc. (NYSE:KMI) has managed to reduce methane emissions by nearly 8%, and in 2023 its methane emission intensity rate was 90% lower than its target and 93% lower than the industry rate in 2012. In addition to that, the company has executed key projects and programs to limit or eliminate the level of methane emissions in line with its 2025 goals.
Overall, in 2025, the company expects to see 4% growth in adjusted EBITDA and 8% growth in adjusted EPS from 2024. Kinder Morgan, Inc. (NYSE:KMI) attributes this growth to its natural gas pipelines and energy transition ventures. The company is also projecting an annualized dividend of $1.17 in the coming year, the 8th consecutive year of growing dividends.
9. Flutter Entertainment plc (NYSE:FLUT)
Duquesne Capital’s Stake Value: $61,820,000
Number of Hedge Fund Holders: 69
Flutter Entertainment plc (NYSE:FLUT) is a gambling company and is a world leader in online sports betting and iGaming operations. The company boasts 12.3 million average monthly players from across the globe, as of 2023. Its distinct portfolio includes Sportsbet, Sisal, Pokerstars, Paddypower, Betfair, and Tombola, to name a few.
While gaming is pure entertainment, sustainability remains a concern. However, Flutter Entertainment plc (NYSE:FLUT) is working tirelessly to ensure responsible gaming takes precedence. On December 11, the company’s brand, FanDuel, launched My Spend, a suite of new tools to nurture responsible gaming. The new personalized gaming dashboard allows users to keep track of their spending habits and budget their finances.
Flutter Entertainment plc (NYSE:FLUT) also enjoyed a solid quarter in terms of financials, with revenue increasing by 27%, exceeding market expectations. The NFL season has particularly led to a surge in profits. In addition to organic growth across platforms, the company shares an emphasis on mergers and acquisitions and shareholder returns, making it one solid investment and explaining why billionaire Stanely Druckenmiller was bullish on the stock at the close of Q3 2024.