Stan Druckenmiller Portfolio: Top 5 Stock Picks

1. Coupang, Inc. (NYSE:CPNG)

Value of Duquesne Capital‘s 13F Position: $324 Million

Number of Hedge Fund Shareholders: 36

Stanley Druckenmiller’s top stock pick for the seventh-straight quarter is Coupang, Inc. (NYSE:CPNG), which his family office owns 19.4 million shares of. At 18.4%, Druckenmiller’s firm has more than twice the 13F exposure to Coupang as it has to any other stock. It’s also the most exposure it’s had to the stock since the fourth quarter of 2021.

Hedge funds as a whole have been hanging in there with Coupang despite its unmitigated struggles since going public in March 2021, as CPNG shares have lost 59% of their value. The value of Druckenmiller’s CPNG holding is down by nearly $200 million since Q1 2021, despite his family office now owning nearly twice as many shares as it did then.

Coupang, Inc. (NYSE:CPNG) has rallied quite a bit from its 2022 low point, gaining 93% since May 9, and that could be just the beginning for the fast-growing South Korean e-commerce company. Coupang is not only growing customers at a steady rate (7% in Q3), but boosting the revenue derived from each customer at an even greater rate (19%). The company is still losing money, but its margins are improving quickly, which could push it to profitability before long.

Baron Funds is bullish on Coupang, Inc. (NYSE:CPNG)’s ability to consolidate the fragmented South Korean e-commerce market in several important categories, as the fund discussed in its Q3 2022 investor letter:

“Coupang, Inc. (NYSE:CPNG), the largest e-commerce platform in South Korea, contributed after reporting a sizable beat on second quarter earnings and raising annual EBITDA guidance. Upside was concentrated in e-commerce, where Coupang is now driving sequential margin expansion while maintaining a growth rate that is triple that of the industry average, lending credence to the investment case that Coupang will consolidate the fragmented e-commerce industry in Korea across both general merchandise and grocery, with healthy long-term margins to follow.”

For more of the latest stock picks worth considering for your portfolio, check out 10 Growth Stocks with Upside Potential and the 14 Best Agriculture Stocks To Buy Now.

Disclosure: None.

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