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Stanley Druckenmiller is Selling These 12 Stocks

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·12 min read
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In this article, we discuss the 12 stocks Stanley Druckenmiller is selling. If you want to skip our detailed analysis of these stocks, go directly to the Stanley Druckenmiller is Selling These 5 Stocks.

Stanley Druckenmiller, the chief of New York-based Duquesne Capital, is a titan of the investing world with an impressive investing history going back over three decades. His hedge fund manages more than $3.4 billions in assets, according to the latest securities filings released at the end of the second quarter of 2021, with the top ten holdings heavily dominated by large technology companies. The top five holdings alone comprise more than 40% of the portfolio. The hedge fund led by Druckenmiller returned 43% in 2020 and was up 17% by May 2021.

According to business news publication Bloomberg, the net worth of Druckenmiller - which presently stands at around $6.8 billion, per Forbes - has increased by $4.6 billion this year. Druckenmiller has managed to do this with shrewd investments focused in the growth sector. Some of the top holdings in the portfolio of Duquesne Capital at the end of the second quarter of 2021 were Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), among others.

Between March and June this year, Druckenmiller trimmed stakes in five of his top ten holdings. Together, the top five stocks in which his fund slashed stakes in the second quarter now account for around 30% of the portfolio. The billionaire, who rose to prominence on Wall Street by shorting the British pound along with George Soros in the early 1990s, founded his fund in the early 1980s and never had a losing year on record before converting the fund into a family office in 2010.

Druckenmiller has in recent years become the architect of the tech-led disruption that is sweeping the finance world. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Our Methodology

With this context in mind, here is our list of the 12 stocks Stanley Druckenmiller is selling.

The stocks were ranked according to the investment portfolio of Duquesne Capital at the end of the second quarter of 2021. The percentage declines in the stakes in the second quarter when compared to the filings for the first three months of the year are mentioned alongside each pick.

Stanley Druckenmiller is Selling These Stocks

12. Palo Alto Networks, Inc. (NYSE: PANW)

Number of Hedge Fund Holders: 69

Percentage Decline in Stake in Q2: 2%

Palo Alto Networks, Inc. (NYSE: PANW) is a California-based cybersecurity solutions provider. It is placed twelfth on our list of 12 stocks Stanley Druckenmiller is selling. Duquesne Capital owned 411,015 shares in the company at the end of the second quarter of 2021, representing 4.37% of the portfolio. The shares are worth $152 million. The fund has trimmed stake in the company by 2% compared to the end of the first quarter of the year.

On August 24, investment advisory Truist kept a Buy rating on Palo Alto Networks, Inc. (NYSE: PANW) stock and raised the price target to $475 from $425, noting that the fourth fiscal quarter earnings beat of the company was “impressive”.

Out of the hedge funds being tracked by Insider Monkey, Connecticut-based firm Viking Global is a leading shareholder in Palo Alto Networks, Inc. (NYSE: PANW) with 2.6 million shares worth more than $979 million.

11. Freeport-McMoRan Inc. (NYSE: FCX)

Number of Hedge Fund Holders: 68

Percentage Decline in Stake in Q2: 11%

Freeport-McMoRan Inc. (NYSE: FCX) is an Arizona-based mining company. It is ranked eleventh on our list of 12 stocks Stanley Druckenmiller is selling. Regulatory filings reveal that Duquesne Capital owned over 5.4 million shares in the firm at the end of June 2021, representing 5.82% of the portfolio. The shares are valued at more than more than $202 million. The fund has decreased stake in the firm by 11% compared to the end of March 2021.

On July 23, investment advisory Deutsche Bank maintained a Buy rating on Freeport-McMoRan Inc. (NYSE: FCX) stock and lowered the price target to $47 from $50, noting that the capex would increase as the firm invested in growth projects.

At the end of the second quarter of 2021, 76 hedge funds in the database of Insider Monkey held stakes worth $3.8 billion in Freeport-McMoRan Inc. (NYSE: FCX), up from 68 in the preceding quarter worth $3.2 billion.

10. Reata Pharmaceuticals, Inc. (NASDAQ: RETA)

Number of Hedge Fund Holders: 18

Percentage Decline in Stake in Q2: 16%

Reata Pharmaceuticals, Inc. (NASDAQ: RETA) is placed tenth on our list of 12 stocks Stanley Druckenmiller is selling. The company operates from Texas as a biopharmaceutical firm. Latest data shows that Duquesne Capital owned 637,344 shares in the company at the end of the second quarter of 2021, representing 2.58% of the portfolio. The shares are valued at over $90 million. The fund has trimmed stake in the company by 16% compared to the filings for the first quarter of the year.

On May 24, investment advisory Goldman Sachs initiated coverage of Reata Pharmaceuticals, Inc. (NASDAQ: RETA) stock with a Buy rating and a price target of $236, noting that the advisory was optimistic about the approval of the lead drug of the firm.

At the end of the second quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $305 million in Reata Pharmaceuticals, Inc. (NASDAQ: RETA), down from 24 the preceding quarter worth $266 million.

Unlike Amazon.com, Inc. (NASDAQ: AMZN) and Alphabet Inc. (NASDAQ: GOOG), Reata Pharmaceuticals, Inc. (NASDAQ: RETA) is one of the stocks Stanley Druckenmiller is selling.

9. Teck Resources Limited (NYSE: TECK)

Number of Hedge Fund Holders: 40

Percentage Decline in Stake in Q2: 19%

Teck Resources Limited (NYSE:TECK) is ranked ninth on our list of 12 stocks Stanley Druckenmiller is selling. The company operates from Canada as a mining firm. Duquesne Capital owned over 3.7 million shares in the company at the end of June 2021, representing 2.46% of the portfolio. The shares are valued at more than $85 million. The fund has slashed stake in the company by 19% compared to the end of March.

On July 28, investment advisory Raymond James maintained an Outperform rating on Teck Resources Limited (NYSE:TECK) stock and raised the price target C$37 from C$35. Brian MacArthur, an analyst at the firm, issued the ratings update.

Out of the hedge funds being tracked by Insider Monkey, UK-based investment firm Contrarius Investment Management is a leading shareholder in Teck Resources Limited (NYSE:TECK) with 7.3 million shares worth more than $170 million.

Unlike Amazon.com, Inc. (NASDAQ: AMZN) and Alphabet Inc. (NASDAQ: GOOG), Teck Resources Limited (NYSE:TECK) is one of the stocks Stanley Druckenmiller is selling.

8. T-Mobile US, Inc. (NASDAQ: TMUS)

Number of Hedge Fund Holders: 100

Percentage Decline in Stake in Q2: 19%

T-Mobile US, Inc. (NASDAQ: TMUS) is a Washington-based communication services firm. It is placed eighth on our list of 12 stocks Stanley Druckenmiller is selling. Regulatory filings reveal that Duquesne Capital owned more than 1.2 million shares in the firm at the end of June 2021, representing 5.36% of the portfolio. The shares are worth over $186 million. The fund has decreased stake in the company by 19% compared to the filings for the first quarter.

On August 2, investment advisory Deutsche Bank reiterated a Buy rating on T-Mobile US, Inc. (NASDAQ: TMUS) stock and raised the price target to $195 from $188, appreciating the “solid” second quarter earnings of the company.

Out of the hedge funds being tracked by Insider Monkey, Greenwich-based investment firm Viking Global is a leading shareholder in T-Mobile US, Inc. (NASDAQ: TMUS) with 7.5 million shares worth more than $1 billion.

Unlike Amazon.com, Inc. (NASDAQ: AMZN) and Alphabet Inc. (NASDAQ: GOOG), T-Mobile US, Inc. (NASDAQ: TMUS) is one of the stocks Stanley Druckenmiller is selling.

7. Microsoft Corporation (NASDAQ: MSFT)

Number of Hedge Fund Holders: 238

Percentage Decline in Stake in Q2: 30%

Microsoft Corporation (NASDAQ: MSFT) is a Washington-based technology company. It is ranked seventh on our list of 12 stocks Stanley Druckenmiller is selling. Latest data shows that Duquesne Capital owned over 1.5 million shares in the company at the end of the first quarter of 2021, representing 11.72% of the portfolio. The shares are worth $408 million. The fund has trimmed stake in the company by 30% compared to the end of March 2021.

On August 20, investment advisory Wedbush maintained a Buy rating on Microsoft Corporation (NASDAQ: MSFT) stock and raised the price target to $350 from $325, noting the improved confidence in the growth for the firm in the next two years as it increased commercial price for the Microsoft 365.

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ: MSFT) with 24.8 million shares worth more than $6.7 billion.

Unlike Amazon.com, Inc. (NASDAQ: AMZN) and Alphabet Inc. (NASDAQ: GOOG), Microsoft Corporation (NASDAQ: MSFT) is one of the stocks Stanley Druckenmiller is selling.

In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ: MSFT) was one of them. Here is what the fund said:

“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”

6. Palantir Technologies Inc. (NYSE: PLTR)

Number of Hedge Fund Holders: 26

Percentage Decline in Stake in Q2: 33%

Palantir Technologies Inc. (NYSE: PLTR) is placed sixth on our list of 12 stocks Stanley Druckenmiller is selling. The firm is based in Colorado and markets software products for intelligence purposes. According to the latest filings, Duquesne Capital owned over 4 million shares in Palantir Technologies Inc. (NYSE: PLTR) at the end of June 2021, representing 3.03% of the portfolio. The shares are valued at over $105 million. The fund has trimmed stake in Palantir Technologies Inc. (NYSE: PLTR) by 33% compared to the end of the first quarter of the year.

On August 13, investment advisory Wolfe Research maintained a Peer Perform rating on Palantir Technologies Inc. (NYSE: PLTR) stock and raised the price target to $25 from $20, appreciating the solid second quarter earnings report by the company.

At the end of the second quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Palantir Technologies Inc. (NYSE: PLTR), down from 32 in the preceding quarter worth $1.1 billion.

Unlike Amazon.com, Inc. (NASDAQ: AMZN) and Alphabet Inc. (NASDAQ: GOOG), Palantir Technologies Inc. (NYSE: PLTR) is one of the stocks Stanley Druckenmiller is selling.

In its Q4 2020 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks andPalantir Technologies Inc. (NYSE: PLTR) was one of them. Here is what the fund said:

“In October, we bought a stake in Palantir. Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companiesto make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir has a long runway of growth ahead.”

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Disclosure. None. Stanley Druckenmiller is Selling These 12 Stocks is originally published on Insider Monkey.