In this article, we will take a look at the top 10 stock picks of billionaire Stanley Druckenmiller.
Druckenmiller on the Fed’s Actions
On November 6, billionaire Stanley Druckenmiller appeared in a podcast, In Good Company, hosted by Nicolai Tangen, CEO of Norges Bank Investment Management. Druckenmiller shared his opinion on the easing cycle and the role of the Fed in the current economic backdrop. He shared that he is primarily keeping a close look at companies and is not seeing any signs of weakness, other than the housing market, that too because of elevated price levels. He also added that for the next 3 to 6 months, he does not expect any economic problems to overshadow the market.
Druckenmiller emphasized that the financial conditions are of more interest to him and that they have been very “loose, looser than they were when the Fed actually started tightening.” He is also particularly interested to see if the market is currently in the “70s rally since 2021” when the inflationary period started, expressing his concerns over inflation moving forward. In addition to inflationary concerns, Druckenmiller is also worried that the Fed had declared victory a tad bit early, lacking confidence in the current market backdrop.
He believes that with a 50 basis point cut, roaring equities, and no material weakness, the market may turn up again. Druckenmiller added that the Fed is “obsessed” with a soft landing and emphasized that “fine-tuning” and “worrying about a soft landing” is not their job. The reason why there is an urgency for a soft landing is because the Fed let the inflation rate jump in the first place, he added. Speaking of the Fed’s actions and forward guidance, Druckenmiller highlighted that the Fed believes that if it changes its due course of action, it may lose credibility, leaving its hands tied.
Stanley Druckenmiller is an American billionaire, investor, and founder of Duquesne Capital, with a net worth of $6.9 billion, as of December 14, 2024. Druckenmiller has made a fortune as a hedge fund manager for 30 big years and now manages money from his family office. He also worked with George Soros until 2000, a renowned investor known for shorting the pound in 1992. He also shares interesting opinions on the money market and the economy. In Q3 2024, Druckenmiller initiated 33 new positions, ending the quarter with a portfolio of $2.95 billion in 13F securities. With that, let’s discuss his top stock picks as of Q3 2024.
Stanley Druckenmiller of Duquesne Capital
Our Methodology
We scanned Duquesne Capital’s Q3 2024 portfolio and picked the fund’s top 13F holdings. Additionally, we’ve also added overall hedge fund sentiment for each stock, as of Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Billionaire Stanley Druckenmiller’s Top 10 Stock Picks
10. Kinder Morgan, Inc. (NYSE:KMI)
Duquesne Capital’s Stake Value: $57,699,000
Number of Hedge Fund Holders: 42
Kinder Morgan, Inc. (NYSE:KMI) ranks 10th on our list of Stanley Druckenmiller’s top stock picks. KMI is one of the largest energy infrastructure companies in North America with nearly 79,000 miles of pipelines and 139 terminals. These pipelines carry natural gas, gasoline, crude oil, carbon dioxide, and much more. Its terminals manage renewable fuels, petroleum products, chemicals, and other products. As of today, the company transports almost 40% of the natural gas produced in the United States, evidence of its position in the industry.
The global energy transition from coal to natural gas is expected to reduce global emissions by 17% by 2050, and KMI is contributing to the goal. As per its 2023 sustainability report, Kinder Morgan, Inc. (NYSE:KMI) has managed to reduce methane emissions by nearly 8%, and in 2023 its methane emission intensity rate was 90% lower than its target and 93% lower than the industry rate in 2012. In addition to that, the company has executed key projects and programs to limit or eliminate the level of methane emissions in line with its 2025 goals.
Overall, in 2025, the company expects to see 4% growth in adjusted EBITDA and 8% growth in adjusted EPS from 2024. Kinder Morgan, Inc. (NYSE:KMI) attributes this growth to its natural gas pipelines and energy transition ventures. The company is also projecting an annualized dividend of $1.17 in the coming year, the 8th consecutive year of growing dividends.
9. Flutter Entertainment plc (NYSE:FLUT)
Duquesne Capital’s Stake Value: $61,820,000
Number of Hedge Fund Holders: 69
Flutter Entertainment plc (NYSE:FLUT) is a gambling company and is a world leader in online sports betting and iGaming operations. The company boasts 12.3 million average monthly players from across the globe, as of 2023. Its distinct portfolio includes Sportsbet, Sisal, Pokerstars, Paddypower, Betfair, and Tombola, to name a few.
While gaming is pure entertainment, sustainability remains a concern. However, Flutter Entertainment plc (NYSE:FLUT) is working tirelessly to ensure responsible gaming takes precedence. On December 11, the company’s brand, FanDuel, launched My Spend, a suite of new tools to nurture responsible gaming. The new personalized gaming dashboard allows users to keep track of their spending habits and budget their finances.
Flutter Entertainment plc (NYSE:FLUT) also enjoyed a solid quarter in terms of financials, with revenue increasing by 27%, exceeding market expectations. The NFL season has particularly led to a surge in profits. In addition to organic growth across platforms, the company shares an emphasis on mergers and acquisitions and shareholder returns, making it one solid investment and explaining why billionaire Stanely Druckenmiller was bullish on the stock at the close of Q3 2024.
8. Freeport-McMoRan Inc. (NYSE:FCX)
Duquesne Capital’s Stake Value: $68,737,000
Number of Hedge Fund Holders: 74
Freeport-McMoRan Inc. (NYSE:FCX) is a mining company that ranks eighth on our list of the top stock picks of Stanley Druckenmiller. The company is one of the largest producers of copper, gold, and molybdenum. While the company has expertise in several areas, it has an emphasis on long-lived copper assets. In the third quarter of 2024, copper and gold sales volume grew well above the July 2024 estimate and the levels from the third quarter of 2023. During the quarter, copper production reached 1.05 billion recoverable pounds, and sales were recorded at 1.04 billion recoverable pounds, 2% above the July 2024 estimate.
As of today, the company operates seven open-pit copper mines in North America, two copper mines in South America, and one of the largest copper and gold deposits in Indonesia through its subsidiary PT-FI. Towards the end of 2019, the subsidiary completed mining the final phase of the Grasberg open pit. From 1990 to 2019, the pit produced 33 billion pounds of copper and 53 million ounces of gold, including 27 billion pounds of copper and 46 million ounces of gold from the Grasberg open pit.
Overall, Freeport-McMoRan Inc. (NYSE:FCX) generated net income worth $526 million and $1.9 billion in operating cash flows in the third quarter of 2024. Consequently, consolidated sales for 2024 are expected to reach 4.1 billion pounds of copper, 1.8 million ounces of gold, and 80 million pounds of molybdenum. At the same time, the company expects production of gold and copper to exceed sales, representing 85 million pounds of copper and 85,000 ounces of gold in inventories for the next year. The company has a dominant position in the production and sale of copper, positioning it as a leader in the industry.
7. MercadoLibre, Inc. (NASDAQ:MELI)
Duquesne Capital’s Stake Value: $98,720,000
Number of Hedge Fund Holders: 87
MercadoLibre, Inc. (NASDAQ:MELI) is an online marketplace headquartered in Uruguay. The company was founded in 1999 and is now present in 18 countries and has over 65 million buyers and 12 million sellers. Unique active buyers reached 61 million during the third quarter of 2024, up from 50 million in the third quarter of 2023, representing a solid growth trajectory.
MercadoLibre, Inc. (NASDAQ:MELI) is one of the largest e-commerce companies in Latin America and recorded $12.9 billion in gross merchandise volume in the third quarter of 2024, up by 14%, and sold nearly 456 million items, up from 357 million items in the third quarter of 2023. Overall, the company’s commerce segment saw a 48% increase in revenues and financial income from the same period last year.
While MELI shares a solid growth trajectory, it is not limited to its financial performance and growing user base in e-commerce. MercadoLibre, Inc. (NASDAQ:MELI) is also expanding its financial services segment rapidly, by acquiring new customers in key markets, with revenues and financial income growing by 215% year-over-year. In the third quarter of 2024, the company saw a 35% year-over-year increase in monthly active users, which reached 56 million.
Polen Capital’s Polen International Growth Strategy stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its Q3 2024 investor letter:
“MercadoLibre, Inc. (NASDAQ:MELI) is Latin America’s largest ecommerce business and an increasingly important player in payments and credit lending Recent earnings results show acceleration in the underlying business despite a challenging macro environment. Management continues to execute very well, taking market share in ecommerce while expanding their offerings in fintech to their user base of over 150 million people. Earlier in 2024, we expected profit margins, which had expanded significantly in recent years, to contract slightly. We see ongoing product development and fulfillment capabilities investments as sound outlays to support longer-term growth.”
6. Philip Morris International Inc. (NYSE:PM)
Duquesne Capital’s Stake Value: $137,745,000
Number of Hedge Fund Holders: 75
Tobacco giant, Philip Morris International Inc. (NYSE:PM), is another top stock pick in Stanley Druckenmiller’s portfolio as of Q3 2024. The company sells products in more than 180 countries across the globe and is currently transitioning to become the largest smoke-free products provider.
As of December 31, 2023, the company has invested over $12.5 billion in developing smoke-free products and has given up on cigarettes completely. By 2030, Philip Morris International (NYSE:PM) intends to become a smoke-free company by a two-thirds majority. While smoke-free alternatives are not entirely risk-free, the company’s products may deliver a reduction in smoking-related deaths by more than 10 times.
Philip Morris International Inc. (NYSE:PM) logged $9.9 billion in sales during the third quarter of 2024, up by 9.6%. 38% of its revenue and 40% of its gross profit came from PMI’s smoke-free business. In addition to that, nearly 36.5 million adult users of PMI’s smoke-free products and nearly 22.1 million adults have switched to its heated tobacco product to prevent smoking. Currently, the company’s smoke-free products are available in 92 markets with close to 40 billion units.
Broyhill Asset Management stated the following regarding Philip Morris International Inc. (NYSE:PM) in its Q3 2024 investor letter:
“Shares of Philip Morris International Inc. (NYSE:PM) gained 21% in Q3. Philip Morris was by far the largest contributor for the quarter. Our core thesis focuses on the shift in business mix from combustible cigarettes towards reduced risk products as well as the company’s re-entry to the US market with its acquisition of Swedish Match. This year, Zyn has become wildly popular. So much so that the company can barely keep it in stock, even as it expands production. We recently discussed how youth usage of these products, a common critique of the company, remains under 2%, even as its overall popularity drives higher volume.”
5. Seagate Technology Holdings plc (NASDAQ:STX)
Duquesne Capital’s Stake Value: $179,670,000
Number of Hedge Fund Holders: 46
Seagate Technology Holdings plc (NASDAQ:STX) ranks fifth on our list of the top stock picks by Stanley Druckenmiller, as of Q3 2024 according to our Insider Monkey database. The technology company specializes in the provision of mass-capacity data storage services. In the past four decades, Seagate Technology Holdings plc (NASDAQ:STX) has delivered over four billion terabytes of capacity which positions it as a leader in the industry.
At the moment, the company is present in 30 countries with customers from across the globe, becoming a primary connecting force between people, businesses, and ideas. Seagate Technology Holdings plc (NASDAQ:STX) is working tirelessly to increase cloud customers for HAMR-based Mozaic productions, ramp up near-line drives, and build momentum to meet the growing customer demand, which explains why 46 hedge funds were bullish on the stock at the end of the third quarter of 2024.
In addition to a strong global presence, Seagate Technology Holdings plc (NASDAQ:STX) is also performing remarkably on the financial front. In the fiscal first quarter, the company generated $2.17 billion in revenue, up from $1.35 billion in the fiscal first quarter of 2024. In addition to that, the company pulled itself out of a net loss in FQ1 2024, generating $305 million in net income in FQ1 2025. Moreover, Seagate Technology Holdings plc (NASDAQ:STX) generated $95 million in cash flow from operations, $27 million in free cash flow, and returned nearly $147 million to shareholders through dividends.
4. Woodward, Inc. (NASDAQ:WWD)
Duquesne Capital’s Stake Value: $181,409,000
Number of Hedge Fund Holders: 32
Woodward, Inc. (NASDAQ:WWD) is a control solutions innovator that makes control systems and control system components for aircraft engines, industrial engines, turbines, power generation, and mobile industrial equipment. The company has over 30 locations, more than 10,000 members around the world, and nearly 224 worldwide distributors.
As per the company’s annual report for the fiscal year 2024, Woodward, Inc. (NASDAQ:WWD) reported that consolidated revenues exceeded $3 billion for the first time followed by a record level of earnings per share. At the same time, the company transformed its supplier simplification strategy using automation technologies, allowing it to become a first choice among customers and to empower suppliers.
Woodward’s (NASDAQ:WWD) race to become a technology-empowered company is its economic moat and is evident from its success in its aerospace segment. The segment saw an increase in sales by approximately 15% with nearly 260 basis points of margin expansion relative to the same period last year. During the year, the company was signed for key programs such as the NASA and Boeing Transonic Truss-Braced Wing Demonstrator and JetZero Blended Wing Body Program, explaining its growing position in the industry.
3. Coherent Corp. (NYSE:COHR)
Duquesne Capital’s Stake Value: $264,821,000
Number of Hedge Fund Holders: 51
Coherent Corp. (NYSE:COHR) ranks third on our list of the top 10 stock picks of Stanley Druckenmiller. The semiconductor manufacturing company is headquartered in Pennsylvania, United States, and is a leading provider of advanced illumination solutions for 3D sensing applications.
It is no surprise that Coherent Corp. (NYSE:COHR) is part of the AI revolution. In the fiscal first quarter of 2025, the company saw solid financial results, driven by its AI-related datacom transceivers. In the fiscal first quarter alone, the company launched several new products including lasers for silicon photonics, produced cutting-edge industrial fiber lasers, and demonstrated its key datacom transceiver multi-technology at the European Conference on Optical Communications (ECOC’ 24).
Overall, revenue for the quarter reached $1.35 billion, an increase of 28% from the same period in the last fiscal year. Consequently, Coherent Corp. (NYSE:COHR) increased revenue guidance for the fiscal second quarter of 2025, expecting it to reach $1.33-$1.41 billion. Gross margin is also expected to range between 36-38%. Coherent Corp. (NYSE:COHR) is set to benefit from the AI revolution and owns extremely crucial technologies, explaining why 51 hedge funds held stakes in the stock at the end of Q3 2024.
Artisan Partners stated the following regarding Coherent Corp. (NYSE:COHR) in its Q3 2024 investor letter:
“During the quarter, we initiated new GardenSM positions in CBRE Group, Tetra Tech and Coherent Corp. (NYSE:COHR). Coherent is a global leader in engineered materials, optoelectronic components and lasers. The company is experiencing strong AI-related demand for its data center optical networking products, which serves a key industry bottleneck as customers try to optimize the efficiency of their AI investments. We believe this AI exposure and an upturn in its more cyclical segments should lead to meaningful multiyear revenue growth. Meanwhile, we believe its new CEO, whom we know well from our campaign in Lattice Semiconductor, will drive meaningful change in the business, including divesting slow-growth business segments and driving much-needed operational improvements to unlock margin expansion opportunities.”
2. Coupang, Inc. (NYSE:CPNG)
Duquesne Capital’s Stake Value: $287,139,000
Number of Hedge Fund Holders: 56
Coupang, Inc. (NYSE:CPNG) is a technology company that provides retail, restaurant delivery, video streaming, and fintech services to customers around the world under brands that include Coupang, Coupang Eats, Coupang Play and Farfetch. The online retail company sells beauty, skincare, snacks, electronics, and clothing items on its platform, Coupang Marketplace. The company celebrates a strong e-commerce infrastructure, boasting more than 100 unique fulfillment centers covering more than 47 million square feet.
In the third quarter of 2024, the company logged $7.9 billion in net revenues, up by 27% year over year. Coupang’s product commerce revenue increased by 16% year-over-year and active customers by 11% in the third quarter of 2024 During the same quarter, CPNG generated $64 million in net income and operating cash flow for the 12 months ended September 30 was $1.8 billion. Apart from its strong e-commerce infrastructure, Coupang (NYSE:CPNG) is a customer favorite, as evidenced by its 22.5 million strong customer base.
Appalaches Capital stated the following regarding Coupang, Inc. (NYSE:CPNG) in its Q3 2024 investor letter:
“A new core holding of the portfolio that may appear confusing is Coupang, Inc. (NYSE:CPNG). Coupang mainly provides a first-party marketplace in South Korea and Taiwan that is similar to Amazon here in the U.S. Coupang additionally has other digital services such as Coupang Play (streaming), Coupang Eats (food delivery), and Coupang Pay (payments). Coupang has a dominant position in South Korean e-commerce, with nearly half of the population represented as an active customer on the platform. At first glance, the company appears marginally profitable and very expensive against current earnings, so it certainly appears to be an outlier against the rest of the portfolio.
A couple of months ago, I shared an article addressing this very subject. As a value investor, I aim to buy shares in businesses trading at a discount to their intrinsic value. This intrinsic value is simply the present value of future cash flows, which can be materially different from the cash flows of the business today. Clearly, I believe this is the case with Coupang…” (Click here to read the full text)
1. Natera, Inc. (NASDAQ:NTRA)
Duquesne Capital’s Stake Value: $452,812,000
Number of Hedge Fund Holders: 62
Natera, Inc. (NASDAQ:NTRA) is the largest holding of billionaire Stanley Druckenmiller. His fund increased its position by 81% in the third quarter of 2024. NTRA is a clinical genetic testing company based in Texas, United States. In the third quarter of 2024, the company generated $439.8 million in total revenues, a record increase of 63.9% year-over-year. Product revenues, at the same time, grew by 64.4% in the same period. Consequently, the company raised guidance for the FY 2024 revenue to $1.64 billion.
Natera, Inc. (NASDAQ:NTRA) is growing rapidly and its rapid approvals coupled with the product line is proof of that. The quarter has been transformative for the company in terms of gross margins, cash flow, and product volumes. During the same quarter, the company processed a record 775,000 tests, up from 626,000 in the third quarter of 2023. Overall, research and development costs are expected to reach $375-$400 million, positioning Natera, Inc. (NASDAQ:NTRA) as an emerging biotechnology company.
Fred Alger Management stated the following regarding Natera, Inc. (NASDAQ:NTRA) in its Q3 2024 investor letter:
“Natera, Inc. (NASDAQ:NTRA) is a specialty lab providing genetic testing services in the reproductive health, oncology and transplant markets. Reproductive health tests are run to screen for common genetic disorders such as trisomy 13, 18, and 21 in pregnant women – these tests are also known as non-invasive prenatal testing (NIPT). The company’s oncology franchise is led by Signatera, a test used to detect minimal residual disease (MRD) – the applications of this test are primarily to monitor therapy response and detect cancer recurrence. Lastly, Natera’s transplant franchise is led by Prospera, a test used to monitor transplant organ rejection. Natera’s tests are all based on the company’s proprietary liquid biopsy platform to detect cell-free DNA. During the quarter, shares contributed to performance after the company reported better-than-expected fiscal second quarter revenues, driven by strong volume growth from new and existing patients. Moreover, higher pricing and product cost control led to gross margin expansion, as management believes this trend should continue as key productivity initiatives like less costly sequencing in the neo-natal franchise are just beginning to positively impact earnings. Importantly, Natera achieved positive cash flow for the second consecutive quarter.”
While we acknowledge the potential of NTRA to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NTRA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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