Stanley Druckenmiller (Trades, Portfolio), founder and CEO of Duquesne Family Office, disclosed in a regulatory 13F filing that his firm’s top five trades during the first quarter included reductions to its holdings in Chevron Corp. (CVX, Financial) and Meta Platforms Inc. (META, Financial). The firm also entered new positions in Microsoft Corp. (MSFT, Financial), IQVIA Holdings Inc. (IQV, Financial) and Alphabet Inc. (GOOGL, Financial).
The Pittsburgh-born guru managed money for George Soros (Trades, Portfolio) during the 1980s, famously shorting the British pound in 1992. Druckenmiller converted Duquesne into a family office in 2010.
Duquesne applies a top-down approach that combines long and short positions in all types of assets, including stocks, bonds, currencies and futures. As of March, the firm’s $2.31 billion 13F equity portfolio contains 48 stocks, with 19 new positions and a quarterly turnover ratio of 40%. The top four sectors in terms of weight are technology, health care, consumer cyclical and communication services, representing 25.38%, 19.24%, 18.06% and 12.03% of the equity portfolio.
Investors should be aware 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 they 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.
Chevron
Duquesne sold 760,155 shares of Chevron (CVX, Financial), trimming 77.28% of the position and 6.75% of its equity portfolio.
Shares of Chevron averaged $167.65 during the first quarter; the stock is modestly undervalued based on its price-to-GF Value ratio of 0.82 as of Tuesday.
The San Ramon, California-based energy exploration company has a GF Score of 85 out of 100 based on a financial strength rank of 8 out of 10 and a rank of 7 out of 10 for profitability, GF Value, growth and momentum.
Chevron’s high financial strength rank is driven by several positive investing signs, which include a high Piotroski F-score of 9 out of 9, a strong Altman Z-score of 4.5 and an interest coverage ratio that outperforms approximately 80% of global competitors.
Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) owns 132,407,595 shares of Chevron, giving the position 6.65% weight in its 13F equity portfolio. The stock represents Berkshire’s fifth-largest holding as of the first quarter.
Other gurus with holdings in Chevron include Ken Fisher (Trades, Portfolio)’s Fisher Investments and Jim Simons (Trades, Portfolio)’ Renaissance Technologies.
Meta Platforms
The firm sold 662,060 shares of Meta Platforms (META, Financial), slicing 73.43% of the position and 3.94% of its equity portfolio.
Shares of Meta averaged $170.30 during the first quarter; the stock is significantly undervalued based on its price-to-GF Value ratio of 0.65 as of Tuesday.
The Menlo Park, California-based social media giant has a GF Score of 96 out of 100 based on a rank of 10 out of 10 for growth and GF Value, a profitability rank of 9 out of 10, a financial strength rank of 8 out of 10 and a momentum rank of 6 out of 10.
Meta’s positive investing signs include a three-star business predictability rank and a high Altman Z-score of 8.1. Additionally, the company’s operating margin outperforms approximately 84% of global competitors despite declining by approximately 10% per year on average over the past five years.
Microsoft
Duquesne purchased 729,400 shares of Microsoft (MSFT, Financial), allocating 9.11% of its equity portfolio to the position.
Shares of Microsoft averaged $255.08 during the first quarter; the stock is fairly valued based on its price-to-GF Value ratio of 0.98 as of Tuesday.
The Redmond, Washington-based software giant has a GF Score of 97 out of 100 based on a financial strength rank of 8 out of 10, a GF Value rank of 5 out of 10 and a rank of 10 out of 10 for momentum, profitability and growth.
Microsoft’s high profitability rank is driven by several positive investing signs, which include a 3.5-star business predictability rank and an operating margin that has increased by approximately 7.5% per year on average over the past five years and outperforms approximately 98% of global competitors.
IQVIA Holdings
The firm invested in 474,500 shares of IQVIA Holdings (IQV, Financial), giving the position 4.09% equity portfolio weight.
Shares of IQVIA Holdings averaged $213.73 during the first quarter; the stock is modestly undervalued based on its price-to-GF Value ratio of 0.85 as of Tuesday.
The Durham, North Carolina-based health care research and analytics company has a GF Score of 90 out of 100 based on a rank of 9 out of 10 for profitability and growth, a financial strength rank of 4 out of 10 and a rank of 7 out of 10 for momentum and GF Value.
Alphabet
Duquesne purchased 877,720 Class A shares of Alphabet (GOOGL, Financial), giving the position 3.95% equity portfolio weight.
Shares of Alphabet averaged $95.94 during the first quarter; the stock is modestly undervalued based on its price-to-GF Value ratio of 0.83 as of Tuesday.
The Mountain View, California-based online search giant has a GF Score of 99 out of 100 based on a rank of 10 out of 10 for profitability and growth, a financial strength rank of 9 out of 10, a momentum rank of 8 out of 10 and a GF Value rank of 7 out of 10.
Alphabet’s high profitability rank is driven by several positive investing signs, which include a 4.5-star business predictability rank and an operating margin that has increased by approximately 2.40% per year on average over the past five years.
