Stanley Druckenmiller (Trades, Portfolio), founder of Pittsburgh-based Duquesne Capital, disclosed he established a stake in New Fortress Energy LLC (NFE, Financial) on Jan. 31.
A former business partner of the legendary George Soros (Trades, Portfolio), Druckenmiller is a top-down, macro investor who has said he makes large bets when he has strong conviction. He has accumulated one of the best 30-year trading records in history, compounding returns at a rate of 30%. In addition, his Duquesne Family Office, which opened in 2010, has yet to suffer a down year.
According to GuruFocus real-time picks, a Premium feature, the guru invested in 1.2 million shares of the New York-based integrated gas-to-power company for an average price of $13.07 per share, dedicating 0.74% of the equity portfolio to the stake. He holds 0.72% of the company’s outstanding shares.
New Fortress Energy, which went public on Jan. 31, has a market cap of $2.35 billion; its shares were trading around $14.05 on Wednesday with a price-book ratio of 3.28.
The price chart shows the fledgling utility company has gained approximately 7% since its initial public offering.
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GuruFocus rated the company’s financial strength 5 out of 10 and its profitability and growth 1 out of 10.
Founded in 2014, New Fortress said on its website it has operations in Miami and Jamaica, delivering liquefied natural gas to customers throughout southern Florida and the Caribbean.
In a statement, founder and CEO Wes Edens said New Fortress Energy’s goal is to “meet the growing demand for affordable, clean and reliable energy around the world.” The company provides modern infrastructure solutions to underdeveloped regions, delivering LNG as well as helping to build new or convert existing facilities to improve efficiency and support the generation of cleaner, more affordable electricity.
Portfolio composition
The guru’s $2.1 billion equity portfolio, which is composed of 40 stocks as of the third quarter, is largely invested in the technology sector at 54.84%. Energy holdings make up a mere 0.47% of the portfolio, while industrials have a 0.26% weight.
Other energy-related companies he is invested in are Cenovus Energy Inc. (CVE, Financial), Devon Energy Corp. (DVN, Financial), Marathon Petroleum Corp. (MPC, Financial) and Nabors Industries Ltd. (NBR, Financial).
Disclosure: None.
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