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Stanley Druckenmiller’s Top 5 Holdings as of the 1st Quarter

The guru feels humbled by market’s strong three-week rally Continue reading... Read More...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="According to top10 guru holdings statistics, a Premium feature of GuruFocus, the top five holdings of Stanley Druckenmiller (Trades, Portfolio)’s Duquesne Family Office as of the March-quarter filing are Amazon.com Inc. (NASDAQ:AMZN), Netflix Inc. (NASDAQ:NFLX), Workday Inc. (NASDAQ:WDAY), Facebook Inc. (NASDAQ:FB) and Microsoft Corp. (NASDAQ:MSFT).” data-reactid=”12″>According to top10 guru holdings statistics, a Premium feature of GuruFocus, the top five holdings of Stanley Druckenmiller (Trades, Portfolio)’s Duquesne Family Office as of the March-quarter filing are Amazon.com Inc. (NASDAQ:AMZN), Netflix Inc. (NASDAQ:NFLX), Workday Inc. (NASDAQ:WDAY), Facebook Inc. (NASDAQ:FB) and Microsoft Corp. (NASDAQ:MSFT).

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Druckenmiller managed money for George Soros (Trades, Portfolio) from 1988 to 2000, famously shorting the British pound in 1992. The Pittsburgh-born guru converted his hedge fund into a family office in 2010.” data-reactid=”19″>Druckenmiller managed money for George Soros (Trades, Portfolio) from 1988 to 2000, famously shorting the British pound in 1992. The Pittsburgh-born guru converted his hedge fund into a family office in 2010.

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Guru "humbled" by market’s three-week comeback” data-reactid=”31″>Guru “humbled” by market’s three-week comeback

The Dow Jones Industrial Average closed at 27,572.44 on Monday, up 461.46 points from last Friday’s close of 27,110.98.

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Last Friday, the 30-stock index closed above 27,000 for the first time since March 4 as investors continued their optimistic trends as states reopen. The U.S. Department of Labor Statistics said that the economy added a record 2.5 million jobs in May, smashing the Dow Jones’ forecast of an over 8 million decline.

Druckenmiller said Monday morning on CNBC’s Squawk Box that the “excitement of reopening” is allowing companies that have been battered by the coronavirus outbreak to “come back in force.” Examples include stocks in the transportation and retail industries, which saw a sharp increase in employment in May according to the Labor Department. Despite this, the guru admitted that his firm gained just 3% during the market’s 40% rally from the March 23 low: Druckenmiller said to CNBC that the corporate sector built a high amount of debt over the past two months and that the coronavirus outbreak could result in a credit-bubble burst that could take years to unwind the leverage.

As of the March 31, Druckenmiller’s $2.47 billion equity portfolio contains 46 stocks, with eight new holdings and a turnover ratio of 38%. The top three sectors in terms of market weight are communication services, technology and consumer cyclical, representing 34.84%, 22.55% and 21.14% of the equity portfolio.

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Amazon.com” data-reactid=”60″>Amazon.com

Druckenmiller owns 180,699 shares of Amazon.com, up 158,481 shares or 713.3% from the fourth quarter of 2019. The position has a 14.28% equity portfolio weight as of the end of March.

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While shares of Amazon.com averaged $1,936.38 during the first quarter, shares of the Seattle-based retail behemoth stormed on Monday over $2,527, close to a 52-week high and up approximately 29% from the first-quarter average price. Druckenmiller said to CNBC that growth stocks like Amazon.com “contributed to the first 35% of the market rally” while stocks of companies hurt by the coronavirus outbreak declined.

GuruFocus ranks Amazon.com’s profitability 8 out of 10 on the back of expanding operating margins, a 4.5-star business predictability rank and three-year revenue and earnings growth rates outperforming over 89% of global competitors. Despite this, the company’s valuation ranks just 1 out of 10 on several signs of overvaluation, including price valuations underperforming over 92% of global retailers.

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Gurus with holdings in Amazon.com include Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B), Ken Fisher (Trades, Portfolio) and Pioneer Investments (Trades, Portfolio).

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Netflix” data-reactid=”102″>Netflix

Druckenmiller owns 846,651 shares of Netflix, up 45.26% from the December 2019 holding. The holding occupies 12.89% of the equity portfolio.

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GuruFocus ranks the Los Gatos, California-based streaming giant’s profitability 8 out of 10 on the back of strong revenue and earnings growth, as evidenced by its 4.5-star predictability rank. Despite this, Netflix’s valuation ranks 2 out of 10 on several signs of overvaluation, which include a share price near a 10-year high and a price-sales ratio near a 52-week high and underperforming 94.32% of global competitors.

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Workday” data-reactid=”127″>Workday

Druckenmiller owns 1,649,211 shares of Workday, dedicating 8.71% of the equity portfolio to the holding.

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The Pleasanton, California-based company provides software-as-a-service solutions for enterprise resource planning. According to GuruFocus, Workday’s three-year average revenue growth rate of 26.2% outperforms over 84% of global competitors while profit margins and returns are underperforming over 74% of global software companies.

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Facebook” data-reactid=”152″>Facebook

Druckenmiller owns 1,243,752 shares of Facebook, up 75.42% from the fourth-quarter 2019 holding. The shares occupy 8.41% of the equity portfolio.

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GuruFocus ranks the Menlo Park, California-based social media giant’s financial strength and profitability 9 out of 10 on several positive investing signs, which include expanding operating margins, robust interest coverage and debt ratios that are outperforming over 70% of global competitors.

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Microsoft” data-reactid=”177″>Microsoft

Druckenmiller owns 1,104,832 shares of Microsoft, down 31.82% from the previous quarter. The shares occupy 7.06% of the equity portfolio.

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GuruFocus ranks the Redmond, Washington-based software giant’s profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8, expanding operating margins and a four-star business predictability rank.

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See also” data-reactid=”202″>See also

Buffett’s favorite market indicator, which captures the ratio of total market cap to gross domestic product, eclipsed 152% on Monday, close to the record high of 152.5% set in January.

Disclosure: The author has no positions in the stocks mentioned. The mention of guru trades and holdings in this article reflects statistics as of the March-quarter filing and does not consider any portfolio hedges, buys or sells the gurus might have made since April.

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  • Warren Buffett’s Market Indicator Reaches 144% Heading Into June

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This article first appeared on GuruFocus.
” data-reactid=”212″>This article first appeared on GuruFocus.

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