In this article, we discuss the 10 stocks that billionaire Stanley Druckenmiller is selling. If you want to read about some more stocks in the Stanley Druckenmiller portfolio, go directly to Billionaire Stanley Druckenmiller is Selling These 5 Stocks.
It is no secret that big technology stocks are undergoing a period of prolonged turmoil as soaring inflation and rising interest rates combine to invoke recession fears and keep investors on the sidelines with regards to growth offerings. Even Wall Street titans are starting to turn on big tech firms. Stanley Druckenmiller of Duquesne Capital, one of the biggest tech bulls in the market, recently sold off many growth stocks in anticipation of a slowdown in the US economy, per latest disclosures made by his hedge fund.
Some of the top stocks in the Duquesne Capital portfolio at the end of the second quarter of 2022 included Chevron Corporation (NYSE:CVX), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), and Eli Lilly and Company (NYSE:LLY). Druckenmiller is not alone in fearing a market crash. Most benchmark indexes in the US are trading in the red over the past few months. The S&P 500 is down 17% year-to-date, the NASDAQ Composite is down 25% year-to-date, and even the Dow Jones Industrial Average is down more than 13%.
Druckenmiller has outlined his investing strategy clearly during a conference in June. The legendary investor said at the time that the markets were already in a bear territory for six months. He noted that even though tactical traders may take advantage of a small lull in this bear market, it was likely that it still had a long way to run. Latest filings show that between March 2022 and June 2022, the value of the equity portfolio of his fund decreased by around $1 billion as he sold off his big tech stakes and stock prices declined widely.
Our Methodology
The companies listed below were picked from the investment portfolio of Duquesne Capital at the end of the second quarter of 2022. The stocks which the hedge fund sold off completely in the second quarter, compared to filings for the first quarter of 2022, were selected. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
Billionaire Stanley Druckenmiller is Selling These Stocks
10. Sunrun Inc. (NASDAQ:RUN)
Number of Hedge Fund Holders: 36
Sunrun Inc. (NASDAQ:RUN) develops and installs residential solar energy systems. The company has been given a massive boost by the recent passing of the Inflation Reduction Act, a legislation that aims to extend tax benefits and includes other incentives for climate firms in the United States. The Act will also provide solar firms with some relief from soaring prices of solar panels, which rose 8% in the second quarter of 2022, and hit the sales of the technology in the country.
On August 18, Morgan Stanley analyst Stephen Byrd maintained an Overweight rating on Sunrun Inc. (NASDAQ:RUN) stock and raised the price target to $79 from $70, noting the firm would benefit from the Inflation Reduction Act.
Among the hedge funds being tracked by Insider Monkey, Bermuda-based investment firm Orbis Investment Management is a leading shareholder in Sunrun Inc. (NASDAQ:RUN), with 12.9 million shares worth more than $303 million.
Just like Chevron Corporation (NYSE:CVX), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), and Eli Lilly and Company (NYSE:LLY), Sunrun Inc. (NASDAQ:RUN) is one of the stocks on the radar of elite investors.
9. The PNC Financial Services Group, Inc. (NYSE:PNC)
Number of Hedge Fund Holders: 42
The PNC Financial Services Group, Inc. (NYSE:PNC) is a diversified financial services firm. On July 15, the company posted earnings for the second quarter, reporting earnings per share of $3.42, beating market estimates by $0.31. The revenue for the period was $5.1 billion, up over 9% compared to the revenue over the same period last year and missing analyst expectations by $9 million. The company also revealed that over the period, it had an operating leverage of 7%, reflecting revenue growth of 9% and expense growth of 2%.
On August 25, Baird analyst David George maintained an Outperform rating on The PNC Financial Services Group, Inc. (NYSE:PNC) stock with a price target of $230, noting the firm was executing well in a challenging environment.
At the end of the second quarter of 2022, 42 hedge funds in the database of Insider Monkey held stakes worth $592 million in The PNC Financial Services Group, Inc. (NYSE:PNC), compared to 49 in the previous quarter worth $1.4 billion.
8. Snap Inc. (NYSE:SNAP)
Number of Hedge Fund Holders: 44
Snap Inc. (NYSE:SNAP) is a camera company headquartered in California. In late August, the company announced that it would be cutting the workforce it had by nearly 20% as part of a massive restructuring plan. The 20% cut will translate to 1,200 jobs. The firm said it expected revenues for the current quarter to register an 8% year-over-year gain, well below expectations of market analysts. The company plans to double down on community growth, revenue growth, and augmented reality in a bid to boost the shares.
On September 1, RBC Capital analyst Brad Erickson maintained a Sector Perform rating on Snap Inc. (NYSE:SNAP) stock and raised the price target to $11 from $10, noting that the positive pre-announcement and headcount reduction of the firm had again surprised investors.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Snap Inc. (NYSE:SNAP), with 18 million shares worth more than $238 million.
In its Q4 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Snap Inc. (NYSE:SNAP) was one of them. Here is what the fund said:
“Snap Inc. (NYSE:SNAP) is the leading social network among teens and young adults in North America and a growing number of overseas markets, including Western Europe and India. Shares fell this quarter on a greater-than anticipated impact from Apple’s new privacy changes for iOS mobile devices. These changes made it more difficult for Snapchat to measure the effectiveness of ads shown on its platform. We believe this is a near-term, industry-wide issue for which Snap Inc. (NYSE:SNAP) is already developing a solution. Longer term, we continue to view Snap Inc. (NYSE:SNAP) favorably as the company sustains its rapid pace of product innovation and expands its premium partnerships with advertisers.”
7. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 50
The Mosaic Company (NYSE:MOS) markets phosphate and potash crop nutrients. Duquesne Capital first purchased a stake in the firm back in the second quarter of 2021. This holding comprised 162,000 shares purchased at an average price of $33.91 per share. This stake was sold off in the next quarter. The share price of the firm, as of September 8, is in excess of $53 per share. At the end of the first quarter of 2022, the firm owned nearly 143,000 shares in the company.
On August 10, Barclays analyst Benjamin Theurer maintained an Underweight rating on The Mosaic Company (NYSE:MOS) stock and lowered the price target to $52 from $59, noting the firm had some downside risk with application in 2022 and low production levels.
At the end of the second quarter of 2022, 50 hedge funds in the database of Insider Monkey held stakes worth $895 million in The Mosaic Company (NYSE:MOS), compared to 66 in the preceding quarter worth $1.5 billion.
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.”
6. Flex Ltd. (NASDAQ:FLEX)
Number of Hedge Fund Holders: 50
Flex Ltd. (NASDAQ:FLEX) provides supply chain services and solutions. On July 27, the company posted earnings for the first fiscal quarter, reporting earnings per share of $0.54, beating market estimates by $0.06. The revenue for the period was $7.3 billion, up over 15% compared to the revenue in the same period last year and beating analyst expectations by $540 million. The company guided second fiscal quarter revenue to $7 billion – $7.4 billion versus consensus of $6.93 billion.
On August 16, Credit Suisse analyst Shannon Cross initiated coverage of Flex Ltd. (NASDAQ:FLEX) stock with an Outperform rating and a price target of $24, noting the firm had a natural offset to cyclical spending and product launches.
At the end of the second quarter of 2022, 50 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Flex Ltd. (NASDAQ:FLEX), compared to 48 the preceding quarter worth $1.4 billion.
Along with Chevron Corporation (NYSE:CVX), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), and Eli Lilly and Company (NYSE:LLY), Flex Ltd. (NASDAQ:FLEX) is one of the stocks that hedge funds are monitoring.
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Disclosure. None. Billionaire Stanley Druckenmiller is Selling These 10 Stocks is originally published on Insider Monkey.
