5 Stocks That Have Grabbed Stanley Druckenmiller’s Attention in 2022

3. Pioneer Natural Resources Company (NYSE:PXD)

Value of Duquesne Capital’s 13F Position: $32.6 million

Number of Hedge Fund Shareholders (as of March 31): 51

130,375 shares of Pioneer Natural Resources Company (NYSE:PXD), which have gained 38% this year, were added to Duquesne Capital’s portfolio during Q1. There was a 24% increase in hedge fund ownership of the stock during the quarter.

Pioneer Natural Resources Company (NYSE:PXD) returned $2 billion to shareholders following its strong Q1 results, paying out a variable dividend of $6.60 per share on top of its fixed quarterly payments of $0.78. That amounted to an impressive 13% dividend yield on an annualized basis. Pioneer has the potential to return some serious cash to shareholders in the coming years thanks to its pristine balance sheet and strong margins.

The Clearbridge Investments Mid Cap Growth Strategy likes Pioneer Natural Resources Company (NYSE:PXD)’s long-term potential even should energy prices decline, having this to say about the company in its Q1 2022 investor letter:

“Our underweight to the energy sector weighed on performance, as energy prices skyrocketed from inflationary pressures and the threat of reduced supply. We have a limited footprint within the sector but continue to look for companies that will generate strong, long-term returns such as Pioneer Natural Resources. Pioneer is an oil and gas exploration and production company that offers a combination of a strong asset base, quality balance sheet and compelling free cash flow yield at current commodity prices. We believe Pioneer has strong underlying drivers that will generate attractive risk-adjusted returns beyond shorter-term fluctuations in energy prices.”