Stan Druckenmiller Portfolio: Top 5 Stock Picks

Below we conclude our look at the Stan Druckenmiller Portfolio: Top 5 Stock Picks. For our methodology and a more comprehensive list of the investor’s stock picks, please see Stan Druckenmiller Portfolio: Top 10 Stock Picks.

5. T-Mobile US, Inc. (NASDAQ:TMUS)

Value of Duquesne Capital‘s 13F Position: $96.5 Million

Number of Hedge Fund Shareholders: 101

After selling off a quarter of his T-Mobile US, Inc. (NASDAQ:TMUS) holding during Q2, Druckenmiller was adding to the position in Q3, raising it by 7% to 719,017 shares. Hedge fund ownership of T-Mobile has remained steady for over two years, with the stock hovering around the 30 most popular stocks among hedge funds throughout that time. Warren Buffett’s Berkshire Hathaway owns the largest TMUS position as of September 30 after Andreas Halvorsen’s Viking Global slashed its large holding by 64% during Q3.

T-Mobile US, Inc. (NASDAQ:TMUS) is one of the rare large-cap stocks having a banner year, being up by 31% year-to-date as its costly integration with Sprint near its conclusion and the fruits of that deal begin to sweeten. The company anticipates achieving free cash flow of $2 billion in the fourth quarter, which would be an 80% year-over-year increase. If it can continue to generate that kind of money, while simultaneously subtracting the $3.8 billion in merger-related expenses it’s racked up over the last year, the company could be generating as much as $12 billion in free cash flow next year.

T-Mobile US, Inc. (NASDAQ:TMUS) is prepared to aggressively redeploy its growing wealth to shareholders, telling investors that it plans to send $60 billion their way between 2023 and 2025. It’s gotten a head start on that initiative this year, announcing that it will buy back $3 billion worth of its shares by the end of this year and $14 billion worth by next September. Given that about half its shares are held by Deutsche Telekom AG and Softbank and are essentially off the market, that buyback initiative could have an even more significant impact on the company’s share price than it otherwise might.