In the world of investment, Stanley Druckenmiller is a genius with an unbeatable track record. Druckenmiller founded Duquesne Capital in 1981 and established such a strong reputation that George Soros hired him in 1988. While Soros receives the majority of the credit for his company's infamous wager against the British Pound in 1992, which netted over $1 billion, Druckenmiller was the one who came up with the original concept.
Throughout his four decade tenure, Druckenmiller accumulated an unrivalled track history as a money manager. The billionaire has never experienced a losing year, even the 2008 economic crisis had no effect on his ability to post double-digit returns. He also enjoyed a run of 30 years straight in which he greatly exacerbated assets at a rate of at least 30%.
Druckenmiller criticised Fed policies last year and has continued to do so this year, saying that investors will now pay the price as a result of those wrong actions. At the Sohn Investment Conference this past month, Druckenmiller said that a recession would start at some point in the coming year and that they are six months into a bearish trend that probably has much more run left in it.
Let's take a closer look at five stocks that, despite the gloomy backdrop, caught Stanley Druckenmiller's eye in the first quarter of 2022. His family office's 13F portfolio had a significant shakeup throughout most of the quarter, with over 13 percent of its allocation to consumer discretionary sectors being reduced while significant investments in energy firms were made. Since the fourth quarter of 2017, Druckenmiller's company has had less exposure to energy equities (13.78%) than it does right now.
5 Stocks Stanley Druckenmiller Is Interested In for 2022
Antero Resources Corp (NYSE:AR)
Value of Duquesne Capital’s 13F Position: $15 million
Number of Hedge Fund Shareholders (as of March 31): 53
Coterra Energy Inc. (NYSE:CTRA), Pioneer Natural Resources Company (NYSE:PXD), and Teck Resources Ltd (USA) (NYSE:TECK) weren't the only energy stocks that Stanley Druckenmiller was interested in during the first quarter. He also targeted Antero Resources Corp (NYSE:AR), as the money manager added 491,800 shares to his position there.
The very first quarter for Antero Resources Corp. (NYSE:AR) was successful thanks to the best quarterly NGL pricing ever recorded for the business. During the quarter, adjusted earnings per share exceeded expectations and reached $1.15. Sales of natural gas increased to $996 million, up 38% from the previous year, and sales of natural gas liquids increased to $660 million, up 50%.
The New York Times Company (NYSE:NYT)
Value of Duquesne Capital’s 13F Position: $18.8 million
Number of Hedge Fund Shareholders (as of March 31): 38
Throughout Q1, Druckenmiller's Duquesne Capital purchased 409,325 shares of The New York Times Company (NYSE:NYT) to add to its 13F portfolio. Contrary to the general hedge fund sector, it saw a 16% decline in ownership of the New York Times even after taking Druckenmiller's buy into account.
In recent years, The New York Times Company (NYSE:NYT) has evolved into a lot more cutting-edge and successful business. Between 2018 and 2021, the number of digital subscriptions greater then double, causing digital revenue to overtake print income in 2020.
It seems like a reasonable time to invest in the venerable news brand, as Druckenmiller has completed, as shares of The New York Times Company (NYSE:NYT) have significantly declined this year, down by 39% to remain barely above their 2018 highs, when the corporation had half the digital subscribers it currently does.
Global-e Online Ltd. (NASDAQ:GLBE)
Value of Duquesne Capital’s 13F Position: $19.4 million
Number of Hedge Fund Shareholders (as of March 31): 26
Another broad acquisition made by Druckenmiller in Q1 is Global-e Online Ltd. (NASDAQ:GLBE). GLBE was also mentioned in Cathie Wood's 10 New Stock Picks for 2022.
Although Global-e Online Ltd. (NASDAQ:GLBE) had a solid first quarter and its organic GMV increased by a similar 66%, the stock has lost 66% of its value this year. Investors are worried about how e-commerce businesses will function with Covid re-openings trying to pick up steam, which has had a significant negative impact on the stock. The company did lower its guidelines for the remaining portion of the year, citing numerous near-term headwinds.
A superb buy-low choice for investors with a longer time horizon, GLBE has a number of catalysts driving its growth that should maintain it well ahead of the overall e-commerce market for several years.
Workday, Inc. (NYSE:WDAY)
Value of Duquesne Capital’s 13F Position: $19.8 million
Number of Hedge Fund Shareholders (as of March 31): 87
Additionally, Workday, Inc. (NYSE:WDAY), a provider of personnel management and financial services software, saw Druckenmiller build a fresh Q1 investment of 82,500 shares.
Workday, Inc. (NYSE:WDAY) twice achieved quarterly adjusted EPS profitability in 2021, assisting in the stock's ascent to record highs. Workday recorded an operational loss of $72.8 million in the first quarter of its fiscal 2023, indicating a significant decline in profitability.
However, despite some significant purchases being delayed until further in the year, Workday, Inc.'s (NYSE:WDAY) most recent quarter had robust revenue growth of 22%, reaching $1.43 billion. Workday was capable of increasing its projected full-year revenue by some other 22%, to between $5.54 billion and $5.56 billion, as a consequence. WDAY trades all over record lows in aspects of its P/S ratio (now less than 7X), making it appear to be a rational long-term investment. Shares have fallen more than 50% since November.
Zendesk Inc (NYSE:ZEN)
Value of Duquesne Capital’s 13F Position: $20.2 million
Number of Hedge Fund Shareholders (as of March 31): 66
It runs a cloud-based system for customer support. Whereas during the quarter, Duquesne Capital created a new investment worth slightly over $20 million, consisting of 167,660 ZEN shares. In Q1, ZEN's ownership by hedge funds increased by 16%, making it just as popular as WDAY.
It's possible that Druckenmiller and other keen hedge fund managers were interested in seeing Zendesk Inc (NYSE:ZEN) get acquired by a more established software business, which appeared to be a likely scenario.
It increased revenue by 30% last year to $1.34 billion, so this year, it anticipates the development of between 26% and 28%. Its total revenue also increased to 83% during the first quarter of this year from 79% in 2020 as a result of increased size and productivity.
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