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Stanley Druckenmiller Was Right About These 9 Stocks

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·9 min read
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In this article, we discuss the 9 stocks that Stanley Druckenmiller was right about. If you want to read about some more stocks that Stanley Druckenmiller was right about, click Stanley Druckenmiller Was Right About These 4 Stocks

Stanley Druckenmiller of Duquesne Capital is one of the most successful investors of the modern era, having averaged annual returns of over 30% for investors between 1986 and 2010, before he converted his hedge fund into a family office. The personal net worth of the veteran investor has topped $10 billion. To put this figure into perspective, his fortune can buy more than 5.44 million troy ounces of gold, over 83 million barrels of crude oil, and is equal to around 0.04% of the Gross Domestic Product (GDP) of the United States. 

The portfolio value of Duquesne Capital decreased by about $400 million between January and March this year as inflationary pressures mounted on stocks. During this period, Druckenmiller made new purchases in 18 stocks, sold out of 16, reduced holdings in 10, and made additional purchases in 10 stocks. The top ten holdings comprise more than 74% of the overall portfolio. Some of the top stocks in the portfolio included Chevron Corporation (NYSE:CVX), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN). 

Druckenmiller has shifted his focus away from growth stocks in the past few months after warning investors of a “massive bubble” that permeated into “everything” at the market. At the Boston Investment Conference, the veteran investor identified some of the sectors in the “bubble” as crypto, meme stocks, art, wine, and equities. He also compared the present market situation to the dotcom bubble of the late 1990s and said that he was convinced that the market was in a “raging mania in all assets” and he was unsure how or when it was going to end. 

Our Methodology

The companies listed below were picked from the investment portfolio of Duquesne Capital at the end of the first quarter of 2022. The stocks that are a new addition to the portfolio, compared to filings for the fourth quarter of 2021, and are up at least 5% year-to-date as of June 6 were selected. Data from around 900 elite hedge funds tracked by Insider Monkey in Q1 2022 was used to identify the number of hedge funds that hold stakes in each firm.

Stanley Druckenmiller Was Right About These 9 Stocks
Stanley Druckenmiller Was Right About These 9 Stocks

Stanley Druckenmiller Was Right About These Stocks

9. Anaplan, Inc. (NYSE:PLAN)

Number of Hedge Fund Holders: 47 

 

Percentage Increase in Share Price (YTD): 44.14%

Anaplan, Inc. (NYSE:PLAN) owns and runs a cloud-based connecting platform. According to the latest filings, Duquesne Capital owned over 211,000 shares of Anaplan, Inc. (NYSE:PLAN) at the end of March 2022 worth $13.7 million, representing 0.59% of the portfolio. 

On March 21, BMO Capital analyst Daniel Jester maintained a Market Perform rating on Anaplan, Inc. (NYSE:PLAN) stock and raised the price target to $66 from $55, noting that the firm was in a “difficult situation trying to re-accelerate growth and improve margins”. 

At the end of the first quarter of 2022, 47 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Anaplan, Inc. (NYSE:PLAN), the same as in the preceding quarter worth $1.7 billion.

Just like Chevron Corporation (NYSE:CVX), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Anaplan, Inc. (NYSE:PLAN) is one of the stocks that elite investors are keeping their eye on. 

Here is what Alger has to say about Anaplan, Inc. (NYSE:PLAN) in its Q1 2021 investor letter:

“Anaplan, Inc. (NYSE:PLAN) was among the top detractors from performance. Anaplan, Inc. (NYSE:PLAN) is a leading provider of cloud-based business planning software. Anaplan’s software platform aims to solve the most complex planning needs of large global enterprises across various business lines. Unlike traditional business planning software, which is often rigid, siloed and opaque, Anaplan’s platform is designed to enable broader enterprise participation and better workforce collaboration during the business planning process. Through better planning, large enterprises can more effectively allocate resources to cut costs and generate revenue. Today Anaplan, Inc. (NYSE:PLAN) has over 1,600 customers across a variety of end markets and business use cases.

Anaplan, Inc. (NYSE:PLAN) shares underperformed in the first quarter as part of a broader sector rotation as high-growth software stocks fell out of favor relative to more cyclically exposed investment opportunities. We believe Anaplan’s focus on growth over near-term profit generation negatively impacts the company’s stock in a rising interest rate environment.

Fundamentally, Anaplan, Inc. (NYSE:PLAN) had strong fourth quarter earnings result, with the company seeing an acceleration of billings growth and a strong demand pipeline as companies realize the need for a more flexible digital planning solution.”

8. Antero Resources Corporation (NYSE:AR)

Number of Hedge Fund Holders: 53     

 

Percentage Increase in Share Price (YTD): 153.58%

Antero Resources Corporation (NYSE:AR) is an independent oil and gas firm. Latest data shows that the hedge fund led by Druckenmiller owned more than 491,000 shares in Antero Resources Corporation (NYSE:AR) at the end of the first quarter of 2022 worth close to $15 million, representing 0.65% of the portfolio. 

On May 31, Mizuho analyst Vincent Lovaglio maintained a Buy rating on Antero Resources Corporation (NYSE:AR) stock and raised the price target to $59 from $56, noting that “global energy undersupply has continued to drive energy commodity prices higher”. 

At the end of the first quarter of 2022, 53 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Antero Resources Corporation (NYSE:AR), compared to 46 in the previous quarter worth $776 million.

7. Cenovus Energy Inc. (NYSE:CVE)

Number of Hedge Fund Holders: 44 

 

Percentage Increase in Share Price (YTD): 89.94%

Cenovus Energy Inc. (NYSE:CVE) produces and markets oil and gas. Securities filings show that Duquesne Capital owned 1.4 million shares of Cenovus Energy Inc. (NYSE:CVE) at the end of March 2022 worth $23 million, representing close to 1.04% of the portfolio. 

On May 9, investment advisory Credit Suisse maintained an Outperform rating on Cenovus Energy Inc. (NYSE:CVE) stock and raised the price target to C$32 from C$28. Manav Gupta, an analyst at the firm, issued the ratings update. 

At the end of the first quarter of 2022, 44 hedge funds in the database of Insider Monkey held stakes worth $2.3 billion in Cenovus Energy Inc. (NYSE:CVE), compared to 37 in the previous quarter worth $853 million.

In its Q4 2021 investor letter, L1 Capital, an asset management firm, highlighted a few stocks and Cenovus Energy Inc. (NYSE:CVE) was one of them. Here is what the fund said:

“Detailed, bottom-up stock research remains the investment team’s primary focus and the core driver of portfolio performance. 2021 once again demonstrated the team’s ability to identify ‘winners’ through extensive company and industry research across a diverse range of sectors. Key contributors included Cenovus Energy Inc. (NYSE:CVE), (due to) recovering oil price leading to improved investor sentiment, consensus earnings upgrades and strong free cash flow generation.”

6. Coterra Energy Inc. (NYSE:CTRA)

Number of Hedge Fund Holders: 39 

 

Percentage Increase in Share Price (YTD): 79.76%

Coterra Energy Inc. (NYSE:CTRA) is an independent oil and gas firm. Regulatory filings show that the investment firm of Druckenmiller owned 1.7 million shares of Coterra Energy Inc. (NYSE:CTRA) at the end of March 2022 close to $47 million, representing 2.07% of the portfolio. 

On April 25, Raymond James analyst John Freeman maintained an Outperform rating on Coterra Energy Inc. (NYSE:CTRA) stock and raised the price target to $42 from $31, noting that the firm would deliver production and capex in-line with expectations this quarter. 

Among the hedge funds being tracked by Insider Monkey, Sydney-based investment firm Antipodes Partners is a leading shareholder in Coterra Energy Inc. (NYSE:CTRA), with 6.5 million shares worth more than $175 million.

In its Q4 2021 investor letter, Palm Valley Capital Management, an asset management firm, highlighted a few stocks and Coterra Energy Inc. (NYSE:CTRA) was one of them. Here is what the fund said:

“Coterra Energy Inc. (NYSE:CTRA), which was known as Cabot Oil & Gas before its merger with Cimarex Energy, was the Fund’s largest contributor in Q3. While we had reduced our weighting as the valuation gap closed, the shares gave back gains in Q4 as natural gas prices fell sharply on above average temperatures.”

5. The Mosaic Company (NYSE:MOS)

Number of Hedge Fund Holders: 66

 

Percentage Increase in Share Price (YTD): 48.52%

The Mosaic Company (NYSE:MOS) markets phosphate and potash crop nutrients. Latest 13F filings show that the hedge fund chaired by Druckenmiller owned 143,825 shares of The Mosaic Company (NYSE:MOS) at the end of March 2022 worth more than $9.5 million, representing 0.41% of the portfolio. 

On May 31, Piper Sandler analyst Charles Neivert maintained an Overweight rating on The Mosaic Company (NYSE:MOS) stock and raised the price target to $85 from $80, noting that “grain prices will both remain elevated and reset the standard for midcycle levels going forward”.

At the end of the first quarter of 2022, 66 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in The Mosaic Company (NYSE:MOS), compared to 46 in the preceding quarter worth $1.3 billion. 

Along with Chevron Corporation (NYSE:CVX), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), The Mosaic Company (NYSE:MOS) is one of the stocks that hedge funds are buying. 

In its Q4 2021 investor letter, Ariel Investments, an asset management firm, highlighted a few stocks and The Mosaic Company (NYSE:MOS) was one of them. Here is what the fund said:

“We continue to believe recent aggressive fiscal and monetary policy will drive high levels of intransient (rather than transitory) inflation. Recent inflation numbers have exceeded our hawkish predictions. While we believed the Consumer Price Index might rise +4% in 2021, double the Fed target of +2%; it rose +7%, the highest level in forty years. Ariel Focus Fund has been well positioned for this environment as natural resource and material companies such as The Mosaic Company (NYSE:MOS) which returned +72.15% for the year. This was one of our two largest holdings at year-end and have performed well very early into 2022.”

   

Click to continue reading and see Stanley Druckenmiller Was Right About These 4 Stocks.

 

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Disclosure. None. Stanley Druckenmiller Was Right About These 9 Stocks is originally published on Insider Monkey.