Stanley Druckenmiller (Trades, Portfolio), president and CEO of the Duquesne Family Office, disclosed this week that his firm’s top-five trades during the second quarter included an increased bet on Alphabet Inc. (GOOGL, Financial)(GOOG, Financial), a new position in Netflix Inc. (NFLX, Financial), the closure of its stake in Citigroup Inc. (C, Financial) and reductions to its stakes in Microsoft Corp. (MSFT, Financial) and Sea Ltd. (SE, Financial).
A former partner of George Soros (Trades, Portfolio)’ firm, the Pittsburgh-based guru takes a macroeconomic approach to investing. The two partners famously shorted the U.K. pound in 1992.
Druckenmiller converted his hedge fund into a family office in 2010. As of June 30, the firm’s $3.48 billion equity portfolio contains 49 stocks, with 16 new positions and a turnover ratio of 22%. The firm’s top three sectors in terms of weight are consumer cyclical, technology and communication services, representing 28.01%, 25.58% and 21.62% of the equity portfolio.
Alphabet
Druckenmiller purchased 59,872 Class A shares of Alphabet (GOOGL, Financial), boosting the position by 192.1% and the equity portfolio by 4.20%. Shares averaged $2,328.99 during the second quarter; the stock is significantly overvalued based on Friday’s price-to-GF Value of 1.38.
GuruFocus ranks the Mountain View, California-based online search giant’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank and profit margins and returns that outperform more than 85% of global competitors.
Other gurus with holdings in Alphabet include Ken Fisher (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio) and Pioneer Investments.
Netflix
Druckenmiller purchased 172,215 shares of Netflix (NFLX, Financial), giving the position 2.61% equity portfolio space. Shares averaged $511.62 during the second quarter; the stock is fairly valued based on Friday’s price-to-GF Value ratio of 0.94.
GuruFocus ranks the Los Gatos, California-based streaming giant’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank and profit margins and returns that outperform more than 87% of global competitors.
Citigroup
The guru sold 2,124,909 shares of Citigroup (C, Financial), slicing 3.98% of his equity portfolio. Shares averaged $74.03 during the second quarter; the stock is fairly valued based on Friday’s price-to-GF Value ratio of approximately 1.
GuruFocus ranks the New York-based bank’s financial strength 3 out of 10: Although the bank has a high Piotroski F-score of 8, debt ratios underperform more than 75% of global competitors.
Microsoft
Druckenmiller sold 620,737 shares of Microsoft (MSFT, Financial), slashing 29.16% of the holding and 3.76% of his equity portfolio. Shares averaged $253.66 during the second quarter; the stock is significantly overvalued based on Friday’s price-to-GF Value ratio of 1.42.
GuruFocus ranks the Redmond, Washington-based software giant’s profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8 and an operating margin that has increased approximately 6.90% per year on average over the past five years and outperforms more than 97% of global competitors.
Sea
The guru sold 439,664 shares of Sea (SE, Financial), curbing 75.4% of the position and 2.53% of his equity portfolio. Shares averaged $253.07 during the second quarter; the stock is significantly overvalued based on Friday’s price-to-GF Value ratio of 1.88.
GuruFocus ranks the Singapore-based interactive media company’s financial strength 5 out of 10: Although the company has a solid Piotroski F-score of 6 and a strong Altman Z-score of 12.44, debt-to-equity ratios underperform more than 80% of global competitors.
