Stanley Druckenmiller's Portfolio Skips Megacap Tech Almost Entirely. Here's What He's Buying Instead.
Key Points
Billionaire investor Stanley Druckenmiller has a long track record of success.
His Duquesne Family office only holds one "Magnificent Seven" stock, and it cut way back on that one in Q1.
Sandisk, Seagate, Broadcom, and Micron are among the tech names he added in Q1.
Stanley Druckenmiller is considered one of the greatest investors ever, with a track record that few can match.
He founded Duquesne Capital in 1981, and over the next 30 years, until he closed up shop in 2010, his portfolio averaged a 30% annual return with no down years.
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Since 2010, he has run the Duquesne Family Office, basically managing his own fortune. He has beaten the S&P 500 over the past 10 years, with a total return of roughly 393% compared to 251% for the benchmark.
Stanley Druckenmiller, Duquesne Family Office. Image source: Getty Images.
Knowing what Druckenmiller is buying and selling could provide some valuable insight into how he sees the market.
In the most recent 13F filing, Druckenmiller's portfolio had some glaring omissions -- "Magnificent Seven" stocks.
Dumping Google and Amazon
In the $3 billion portfolio, with some 65 holdings, Druckenmiller holds just one Magnificent Seven stock, Amazon. But he reduced his Amazon position significantly, selling roughly 692,000 shares in Q1. Amazon is now a minor position, representing about 0.32% of the portfolio.
The only other Magnificent Seven stock that Druckenmiller held was Alphabet. However, he completely exited out of the Google parent in Q1, selling all 385,000 shares he owned.
But the portfolio is not completely devoid of big tech. Druckenmiller added a new stake in Broadcom, which many consider the magnificent eighth stock. Druckenmiller bought some 196,000 shares of Broadcom, representing a 2% stake in the portfolio. He also added new positions in tech and AI highfliers Micron, Intel, Seagate, Sandisk, and Arm Holdings. But none of these represent more than 1% of the total portfolio.
In addition, Druckenmiller added 1.8 million shares of STMicroelectronics, which now makes up 3% of the portfolio.
Natera is the largest position
The largest position in a megacap tech stock that Druckenmiller owns is in Taiwan Semiconductor Manufacturing. While he sold off about 9% of Taiwan Semiconductor shares in Q1, he still holds about 495,000 shares, representing roughly $167 million, or about 5.7% of the overall portfolio.
The largest Druckenmiller position by far is Natera (NASDAQ: NTRA), a cell-free genetic testing company focused on women's health, oncology, rare diseases, and organ health. Druckenmiller boosted his position in Natera by 22% in Q1, adding some 552,000 shares. Natera stock now makes up about 21% of the entire Duquesne portfolio.
The next-largest position is Insmed, a biopharmaceutical company that treats patients with serious and rare diseases. Druckenmiller pared back Insmed shares by 22%, but it is still the second-largest holding, accounting for 6.4% of the total.
Taiwan Semiconductor is third, followed by YPF Sociedad Anónima, an Argentinian oil and gas company. He added 2.6 million shares of YPF in Q1, a 433% increase. It now makes up 5.1% of the portfolio.
Fifth is the iShares MSCI Brazil ETF, which invests in large and mid-cap companies in Brazil. It accounts for 4.5% of the total portfolio. The only other stock that accounts for more than 4% of the portfolio is Mexican grocery store chain BBB Foods.
Dave Kovaleski has positions in Micron Technology. The Motley Fool has positions in and recommends Alphabet, Amazon, Arm Holdings, BBB Foods, Broadcom, Intel, Micron Technology, Natera, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.