In this article, we discuss Stanley Druckenmiller’s 5 defensive stock picks. If you want to read about some more stocks in the Druckenmiller portfolio and a detailed overview of his latest market prediction, go directly to Market Could be “Flat” for 10 Years: Druckenmiller’s Prediction and His 10 Defensive Stock Picks.
5. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 59
Chevron Corporation (NYSE:CVX) engages in integrated energy and chemical operations worldwide. Securities filings show that Duquesne Capital owned 830,435 shares of Chevron Corporation (NYSE:CVX) at the end of June 2022 worth $120 million, representing close to 8.69% of the portfolio. Chevron Corporation (NYSE:CVX) is one of the defensive stock picks of Stanley Druckenmiller.
On September 12, investment advisory Piper Sandler maintained an Overweight rating on Chevron Corporation (NYSE:CVX) stock and raised the price target to $190 from $189. Analyst Ryan Todd issued the ratings update.
At the end of the second quarter of 2022, 59 hedge funds in the database of Insider Monkey held stakes worth $26 billion in Chevron Corporation (NYSE:CVX), compared to 53 the preceding quarter worth $27.99 billion.
In its Q1 2022 investor letter, Diamond Hill, an asset management firm, highlighted a few stocks and Chevron Corporation (NYSE:CVX) was one of them. Here is what the fund said:
“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”
4. Antero Resources Corporation (NYSE:AR)
Number of Hedge Fund Holders: 64
Antero Resources Corporation (NYSE:AR) is an independent oil and natural gas company that acquires, explores for, develops, and produces natural gas, natural gas liquids, and oil properties. According to the latest filings, Duquesne Capital owned over 1 million shares of Antero Resources Corporation (NYSE:AR) at the end of June 2022 2022 worth $31 million, representing 2.25% of the portfolio. Antero Resources Corporation (NYSE:AR) is also an elite defensive stock pick of Stanley Druckenmiller.
On August 18, Mizuho analyst Vincent Lovaglio maintained a Buy rating on Antero Resources Corporation (NYSE:AR) stock and lowered the price target to $49 from $53, noting that the broader thesis for the exploration and production sector holds after the Q2 results.
At the end of the second quarter of 2022, 64 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in Antero Resources Corporation (NYSE:AR), compared to 53 in the preceding quarter worth $1.4 billion.
3. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 70
Eli Lilly and Company (NYSE:LLY) discovers, develops, and markets human pharmaceuticals worldwide. Latest data shows that the hedge fund led by Druckenmiller owned more than 297,100 shares in Eli Lilly and Company (NYSE:LLY) at the end of the second quarter of 2022 worth close to $96 million, representing 6.97% of the portfolio.
On September 6, BMO Capital analyst Evan Seigerman maintained an Outperform rating on Eli Lilly and Company (NYSE:LLY) stock and raised the price target to $396 from $369, noting it was difficult to overemphasize the opportunity in obesity drugs for the firm.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Eli Lilly and Company (NYSE:LLY), with 5.9 million shares worth more than $1.9 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Eli Lilly and Company (NYSE:LLY) was one of them. Here is what the fund said:
“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company focused on discovering, developing, and selling medicines for patients in the therapeutic areas of diabetes, oncology, immunology, and neuroscience. Stock performance was strong due to positive study results for Eli Lilly’s drug Tirzepatide (subsequently branded Mounjaro), which delivered up to 22.5% weight loss in adults with obesity. We think Tirzepatide is in the early innings of adoption in a large obesity market where penetration of anti-obesity medications is currently low. We continue to think Eli Lilly has a healthy base business with limited near-term patent expirations, a strong pipeline, and potential for significant margin expansion, which should translate to solid revenue and earnings growth over many years.”
2. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 96
T-Mobile US, Inc. (NASDAQ:TMUS) provides mobile communications services. Latest data shows that Duquesne Capital owned 676,867 shares of T-Mobile US, Inc. (NASDAQ:TMUS) at the end of the second quarter of 2022 worth over $91 million, representing 6.58% of the portfolio. T-Mobile US, Inc. (NASDAQ:TMUS) is one of the premier defensive stock picks of Stanley Druckenmiller.
On September 9, Raymond James analyst Ric Prentiss maintained a Strong Buy rating on T-Mobile US, Inc. (NASDAQ:TMUS) stock and raised the price target to $178 from $175, noting that the board had authorized a $14 billion stock repurchase, which is positive for value creation.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Viking Global is a leading shareholder in T-Mobile US, Inc. (NASDAQ:TMUS), with 9.2 million shares worth more than $1.2 billion.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and T-Mobile US, Inc. (NASDAQ:TMUS) was one of them. Here is what the fund said:
“As mentioned, the communication services sector has come under some pressure, and irrational pricing competition has negatively impacted wireless industry growth and profitability of late, weighing on T-Mobile US, Inc. (NASDAQ:TMUS). Faced with these headwinds, and with pressure from other wireless carriers and cable companies that could cause the company to cede share in subscriber growth in 2022, we exited our position in the fourth quarter.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) develops, licenses, supports software, services, devices, and solutions worldwide. According to the latest filings, Duquesne Capital owned over 740,700 shares of Microsoft Corporation (NASDAQ:MSFT) at the end of June 2022 2022 worth $190 million, representing 13.76% of the portfolio. Microsoft Corporation (NASDAQ:MSFT) is one of the top defensive stock picks of Stanley Druckenmiller.
On July 27, Wedbush analyst Daniel Ives maintained an Outperform rating on Microsoft Corporation (NASDAQ:MSFT) stock and lowered the price target to $320 from $340, noting that the metrics around cloud and commercial bookings looked strong for the firm.
At the end of the second quarter of 2022, 258 hedge funds in the database of Insider Monkey held stakes worth $56 billion in Microsoft Corporation (NASDAQ:MSFT), compared to 259 in the previous quarter worth $66 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“Shares of Microsoft Corporation (NASDAQ:MSFT), a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues. (read more…)
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