Stan Druckenmiller Portfolio: Top 5 Stock Picks

2. Eli Lilly and Company (NYSE:LLY)

Value of Duquesne Capital‘s 13F Position: $157 Million

Number of Hedge Fund Shareholders: 75

Druckenmiller’s stake in Eli Lilly and Company (NYSE:LLY) was raised by 64% during Q3, hitting 484,895 shares by the end of the quarter. The investing icon first added LLY to his family office’s 13F portfolio during Q2, a quarter in which there was a huge jump in hedge fund ownership of the stock. The number of funds long LLY ticked up again during Q3, pushing to a new all-time high.

The bigger push into Eli Lilly and Company (NYSE:LLY) is paying off for Druckenmiller, as the stock has gained 14% in Q4 to push its year-to-date gains to 36%. Eli Lilly’s current growth isn’t particularly exciting, as the company grew revenue by just 2% to $6.9 billion during Q3. It’s the company’s pipeline of upcoming therapies that has investors like Druckenmiller pouring into the stock, with four potential product launches lined up for 2023. Eli Lilly also has some promising growth prospects among its current crop of treatments, including diabetes medicine Mounjaro, which has blockbuster potential.

The ClearBridge Global Growth Strategy believes investors are undervaluing the market potential that Eli Lilly and Company (NYSE:LLY)’s diabetes drugs like Mounjaro have, as it discussed in its Q3 2022 investor letter:

“In the U.S., we initiated a position in pharmaceutical maker Eli Lilly (NYSE:LLY) as it brings out new drug candidates for diabetes and Alzheimer’s disease. New drugs impact diabetes but have also demonstrated significant weight loss for patients who are overweight and have other co-morbidity issues as a result. Lilly is one of the two key players in diabetes care and we believe the potential market opportunity is much higher than the consensus forecasts as we are seeing evidence of accelerating adoption.”