Stanley Druckenmiller (Trades, Portfolio), manager of Duquesne Capital Management, disclosed on Tuesday that he initiated 11 new positions during the first quarter. The guru’s top five new positions are Intel Corp. (INTC, Financial), Alibaba Group Holding Ltd. (BABA, Financial), Micron Technology Inc. (MU, Financial), Netflix Inc. (NFLX, Financial) and Adobe Systems Inc. (ADBE, Financial).
Intel
Druckenmiller invested in 2,462,000 shares of Intel for an average price of $47.52 per share. The fund manager dedicated 7.09% of his portfolio to the transaction.
Intel designs and manufactures microprocessors and platform solutions for the global personal computer and data center markets. The company’s profitability ranks 7 out of 10 primarily due to expanding operating margins and consistent revenue growth. Intel’s profit margins and Greenblatt returns on capital are outperforming over 85% of global competitors. GuruFocus ranks Intel’s business predictability three stars out of five.
Alibaba
Druckenmiller invested in 657,400 shares of Alibaba for an average price of $188.29 per share. The fund manager dedicated 6.67% of his portfolio to the transaction.
The Chinese retail giant’s profitability ranks 8 out of 10, suggesting good growth potential. Alibaba’s operating margin outperforms 98% of global competitors despite contracting approximately 9.3% per year over the past five years. GuruFocus ranks the company’s business predictability five stars out of five as the company had consistent revenue and earnings growth over the past 10 years.
Andreas Halvorsen (Trades, Portfolio), founder of Viking Global Partners, established a 2,201,963-share stake in Alibaba during the quarter.
Micron Technology
Druckenmiller invested in 2,187,500 shares of Micron Technology for an average price of $47.87 per share. The fund manager dedicated 6.30% of his portfolio to the transaction.
Micron Technology manufactures various memory and storage technologies, including DRAM, NAND, NOR and 3D XPoint memory. The company’s profitability ranks 8 out of 10, driven by several factors, including expanding operating margins and a strong Piotroski F-score of 8.
Micron’s Greenblatt earnings yield and Yacktman forward rate of return outperform over 86% of global competitors. George Soros (Trades, Portfolio) and Leon Cooperman (Trades, Portfolio) also invested in Micron as the company offers good growth and value potential.
Netflix
Druckenmiller invested in 189,700 shares of Netflix for an average price of $272.22. The fund manager dedicated 3.1% of his portfolio to the transaction.
Netflix provides a subscription-based platform for television shows, movies and original series. The company’s profitability ranks 8 out of 10: even though the company’s profit margins outperform just 55% of global competitors, Netflix’s three-year revenue growth rate and Greenblatt return on capital rank higher than 93% of global diversified media companies.
Adobe
Druckenmiller invested in 122,500 shares of Adobe for an average price of $203.33 per share. The fund manager dedicated 1.46% of his portfolio to the transaction.
Adobe develops and sells software and services for content creation and the measurement of digital advertising and marketing. The company known for the Portable Document Format (PDF) has three positive investing signs contributing to a strong profitability rank of 9: expanding operating margins, consistent revenue growth and a perfect Piotroski F-score of 9. GuruFocus ranks Adobe’s business predictability 2.5 stars out of five.
See also
Druckenmiller also initiated positions in TAL Education Corp. (TAL, Financial), Qualcomm Inc. (QCOM, Financial), Vipshop Holdings Ltd. (VIPS, Financial), Sterling Bancorp (STL, Financial), Intra-Cellular Therapies Inc. (ITCI, Financial) and PagSeguro Digital Ltd. (PAGS, Financial).
Disclosure: No positions.
