According to current portfolio statistics, a Premium feature of GuruFocus, the top-five holdings in Stanley Druckenmiller (Trades, Portfolio)’s second-quarter 13F equity portfolio are Coupang Inc. (CPNG, Financial), Microsoft Corp. (MSFT, Financial), Chevron Corp. (CVX, Financial), Eli Lily & Co. (LLY, Financial) and Freeport-McMoRan Inc. (FCX, Financial).
While Coupang had a solid gain during the past three months, the other four holdings produced mixed results as investors continue grappling with the Federal Reserve’s aggressive interest rate hikes to combat inflation.
Druckenmiller sees hard landing by end of 2023 as 'central case'
On Wednesday, the Dow Jones Industrial Average closed at 29,683.74, up 548.75 points from the previous close of 29,134.99. Despite this, the Dow is still down approximately 7.52% over the past month.
The Duquesne Family Office leader said in CNBC’s “Delivering Alpha” investor summit that he would be “stunned” if there is no recession by the end of 2023, further warning that he would not be surprised if the recession is larger than the “average garden” variety. The former partner of George Soros (Trades, Portfolio)’ Quantum Fund mentioned that the Fed’s quantitative easing measures over the past few months resulted in an asset bubble and liquidity shrinkage.
According to the Aggregated Statistics Chart, a Premium feature, the mean one-month return of the Standard & Poor’s 500 index stocks is -9.45% with a median of -9.33%.
Portfolio overview
Druckenmiller converted his Duquesne hedge fund into a family office in 2010. As of June, the firm’s $1.38-billion 13F equity portfolio contains 43 stocks, with nine new positions and a quarterly turnover ratio of 21%. The top-three sectors in terms of weight are technology, consumer cyclical and energy, with weights of 25.30%, 19.51% and 17.15%.
The stocks mentioned in this article are based on Duquesne’s second-quarter 13F equity portfolio filing. Investors should be aware that the 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but the reports can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Coupang
Duquesne owns 19,434,307 shares of Coupang (CPNG, Financial) as of the second quarter's end, giving the position a 17.93% equity portfolio weight.
Shares of Coupang traded around $17.67 on Wednesday. The stock gained approximately 40.94% over the past three months.
The South Korean e-commerce company has a GF Score of 18 out of 100 based on a financial strength rank of 5 out of 10 and a profitability rank of 1 out of 10. Despite this, the stock does not have enough data to compute a growth rank, a GF Value rank or a momentum rank and thus, the GF Score may give an incomplete picture of the stock’s potential.
Other gurus with holdings in Coupang include Baillie Gifford (Trades, Portfolio) and Lee Ainslie (Trades, Portfolio)’s Maverick Capital.
Microsoft
Duquesne owns 740,785 shares of Microsoft (MSFT, Financial), allocating 13.77% of its equity portfolio to the position.
Shares of Microsoft traded around $240.21, showing that the stock is modestly undervalued based on Wednesday’s price-to-GF-Value ratio of 0.77. The stock dipped approximately 5.91% over the past three months.
The Redmond, Washington-based software giant has a GF Score of 99 out of 100 based on a rank of 10 out of 10 for profitability and growth, a GF Value rank of 9 out of 10 and a rank of 8 out of 10 for momentum and financial strength.
Chevron
Duquesne owns 830,435 shares of Chevron (CVX, Financial), dedicating 8.7% of its equity portfolio to the holding.
Shares of Chevron traded around $145.78, showing that the stock is modestly undervalued based on Wednesday’s price-to-GF-Value ratio of 0.80. The stock slid approximately 2.45% over the past three months.
The San Ramon, California-based oil giant has a GF Score of 79 out of 100 based on a financial strength rank of 8 out of 10, a GF Value rank of 7 out of 10, a growth rank of 5 out of 10 and a rank of 6 out of 10 for profitability and momentum.
Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) also has a holding in Chevron.
Eli Lily & Co.
Duquesne owns 297,150 shares of Eli Lily & Co. (LLY, Financial), giving the position a 6.97% equity portfolio weight. Shares traded around $334.38 on Wednesday, showing that the stock is significantly overvalued based on Wednesday’s price-to-GF-Value ratio of 1.52. Despite this, the stock has gained approximately 5.66% over the past three months.
The Indianapolis-based drug manufacturer has a GF Score of 77 out of 100. Even though the company has a GF Value rank of 1 out of 10 and a momentum rank of 3 out of 10, Eli Lily & Co. has a financial strength rank of 6 out of 10 and a rank of 9 out of 10 for profitability and growth.
Freeport-McMoRan
Duquesne owns 3,231,827 shares of Freeport-McMoRan (FCX, Financial), giving the position a 6.84% equity portfolio weight.
Shares of Freeport-McMoRan traded around $27.86, showing that the stock is modestly undervalued based on Wednesday’s price-to-GF-Value ratio of 0.71. Despite this, the stock has tumbled over 9.31% over the past three months.
The Phoenix-based metals and mining company has a GF Score of 80 out of 100. Although the company has a rank of 10 out of 10 for GF Value and momentum, Freeport-McMoRan has a profitability rank of 7 out of 10, a financial strength rank of 6 out of 10 and a growth rank of just 4 out of 10.
