Stanley Druckenmiller (Trades, Portfolio), former partner of George Soros (Trades, Portfolio)’s Quantum Fund, initiated three positions during the third quarter: Citigroup Inc. (C, Financial), Chubb Ltd. (CB, Financial) and Celgene Corp. (CELG, Financial).
Citigroup
The Duquesne Capital fund manager invested in 1,095,200 shares of Citigroup for an average price of $68.28 per share. With this transaction, Druckenmiller expanded his portfolio 3.62%.
Citigroup’s profitability ranks 4 out of 10, suggesting modest growth potential. The company’s margins and returns are near a 10-year high yet underperform over 55% of global competitors.
Citigroup has a negative three-year compound annual growth rate (CAGR) of sales, a severe warning sign according to GuruFocus. The company’s revenues in Corporate / Other declined 55% primarily due to the “continued wind-down of legacy non-core assets.” Despite this, overall company revenues increased 2% year over year.
Chubb
Druckenmiller added 206,600 shares of Chubb for an average price of $144.66 per share. With this transaction, the guru increased his portfolio 1.34%.
Chubb’s profitability rank of 5 suggests the company has satisfactory growth potential. The company said in its third-quarter report that although revenues increased 1% from the prior-year quarter, it still reported a net loss of $70 million due to a $1.893 billion pretax catastrophe loss as a result of the three hurricanes and other natural disasters.
Celgene
Druckenmiller added 188,100 shares of Celgene for an average price of $135.96 per share. With this transaction, the fund manager increased his portfolio 1.25%.
Celgene’s profitability rank of 9 suggests strong short-term growth potential. The company reported net product sales of $3.283 billion for the quarter, up 11% from the prior-year quarter. The strong increase in product sales contributed to a three-year revenue growth of 22.80%, which outperforms 76% of global biotech companies.
Disclosure: I do not have positions in the stocks mentioned.
