Stanley Druckenmiller, the prominent investor and founder of the now-defunct Duquesne Capital, has been outspoken about his pessimism with the U.S. stock market, attributing poor performance to a number of issues including the Federal Reserve, mounting corporate debt and the Chinese government.
Nonetheless, a 13F report filed with the SEC has helped to show Druckenmiller's family office's activity over the second quarter of this year, and the results show that Druckenmiller made some bullish investment decisions as he stayed quite active.
Notably, the billionaire investor, who now manages only his own money and thus is free from the demands of producing returns for external clients, showed interest in energy and materials stocks while trimming back others in the consumer sector. By the end of the quarter, Druckenmiller had a net decline in the total number of his positions, down by two after he exited 22 and initiated 20 stakes.
Notably, the billionaire investor, who now manages only his own money and thus is free from the demands of producing returns for external clients, showed interest in energy and materials stocks while trimming back others in the consumer sector. By the end of the quarter, Druckenmiller had a net decline in the total number of his positions, down by two after he exited 22 and initiated 20 stakes.
Soda and Cigarettes for Sale
Among the holdings that Duquesne Family Office cut down on this quarter were consumer staples like soda and cigarettes. The investment office exited its positions in PepsiCo Inc. (PEP) and The Coca-Cola Co (KO) as well as cutting Philip Morris International Inc. (PM) during the previous few months. As consumers have tended toward healthier options and clean eating and living has become more trendy, these producers have suffered in the marketplace.
Among the holdings that Duquesne Family Office cut down on this quarter were consumer staples like soda and cigarettes. The investment office exited its positions in PepsiCo Inc. (PEP) and The Coca-Cola Co (KO) as well as cutting Philip Morris International Inc. (PM) during the previous few months. As consumers have tended toward healthier options and clean eating and living has become more trendy, these producers have suffered in the marketplace.
While PepsiCo and Coca-Cola have searched for new corners of the market in which to operate, attempting to diversify their product line-ups to match shifts in consumer interest, they have yet to find success that matches their previous positions. Druckenmiller sold of the entirety of his stake in both soda companies in the second quarter, a total of about 353,000 shares of PEP and 1.39 million shares of KO.
Druckenmiller sold off Philip Morris during the same period, as the tobacco company failed to live up to analyst expectations of revenue and earnings per share (EPS). This came at the same time as an overall decline in production and shipping of cigarettes nationwide, although the company itself is optimistic about future trends.
Movement Towards Energy and Materials
Mining company Freeport-McMoRan Inc. (FCX) was a major purchase for Druckenmiller in the past quarter, as Duquesne's position by the end of June constituted nearly 3.5 million shares at a value of $38.6 million. Despite negative price trends leading to an apparent low point in February of 2016, the mining outfit has seen its stock rise by over 80% on the year so far. Druckenmiller is not alone in his optimism about FCX stock, as Carl Icahn also held on to his stake of 104 million shares during the second quarter.
Halliburton Company (HAL) comprised a big investment on the energy side of Druckenmiller's portfolio, as the investor initiated a stake of 2.18 million shares at a value of just under $100 million by June 30.
By: Nathan Reiff (Investopedia).
Photo: Guru Focus.
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
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Druckenmiller sold off Philip Morris during the same period, as the tobacco company failed to live up to analyst expectations of revenue and earnings per share (EPS). This came at the same time as an overall decline in production and shipping of cigarettes nationwide, although the company itself is optimistic about future trends.
Movement Towards Energy and Materials
Mining company Freeport-McMoRan Inc. (FCX) was a major purchase for Druckenmiller in the past quarter, as Duquesne's position by the end of June constituted nearly 3.5 million shares at a value of $38.6 million. Despite negative price trends leading to an apparent low point in February of 2016, the mining outfit has seen its stock rise by over 80% on the year so far. Druckenmiller is not alone in his optimism about FCX stock, as Carl Icahn also held on to his stake of 104 million shares during the second quarter.
Halliburton Company (HAL) comprised a big investment on the energy side of Druckenmiller's portfolio, as the investor initiated a stake of 2.18 million shares at a value of just under $100 million by June 30.
By: Nathan Reiff (Investopedia).
Photo: Guru Focus.
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
For The #FacebookTeam