Stanley Druckenmiller is one of the hedge fund world's longest-standing success stories. After an early start to his career working with George Soros, Druckenmiller struck out on his own in 1981 to found Duquesne Capital Management. As of now, Druckenmiller's firm has about $10 billion in AUM, placing it well above the minimum asset levels required by the SEC in order to produce quarterly 13-F reports. As the deadline for 13-F filings for the last quarter of 2016 has just passed, analysts can now see some of the ways that Druckenmiller changed his investment positions in the last few months of the past year. In taking a close look at Duquesne Capital's holdings as revealed by the most recent 13-F, it seems that Druckenmiller has shaken up his positions quite a bit, adding, among other things, three exchange-traded funds (ETFs). (See also: Druckenmiller Returns to Gold)
Three New ETFs in Druckenmiller's Portfolio
Druckenmiller added three ETFs in the last three months of 2016: iShares Russell 2000 (IWM), SPDR Select Sector Fund - Financial (XLF), and SPDR Select Sector Fund - Industrial (XLI). Notable in this pool of new investments is the focus on financials and industrials. These two sectors have been the target of much recent attention among the biggest names in the investment world, particularly with regard to broad expectations that President Trump will introduce new fiscal and regulatory policy which will give companies in those areas a major boost. As of yet, Trump's campaign promises for adjusted corporate tax rates and looser regulations have not come to pass, but that has not prevented many on Wall Street from making bets as if they are going to come true. (See also: Barclays: Time to Buy Industrials)
Other Additions and Eliminations
Druckenmiller also made a number of other adjustments to his fund's holdings at the end of last year. He added a position of just over 1 million shares of Halliburton Co. (HAL). Shares of HAL stock averaged at just under $50 each during the final quarter of 2016, constituting an overall portfolio increase of around 5.5% for Druckenmiller and Duquesne. The billionaire investor may have chosen to focus his efforts there based on Halliburton's positive outlook in its most recent annual report.
At the same time, Druckenmiller reduced, or cut entirely, some of his existing positions. Notably, Duquesne eliminated its 470,600 shares of Alibaba Group Holding Limited (BABA), the Chinese e-commerce giant. Druckenmiller also cut out another branch of iShares; he eliminated entirely his position in iShares MSCI Emerging Index Fund (EEM) at some point over the last quarter. While 13-Fs are helpful in following broad trends such as these within an investor's portfolio, they are both delayed by several weeks and not entirely comprehensive. There are portions of Druckenmiller's investments, for instance, which he is not required to report. (See also: The Difference Between Amazon And Alibaba's Business Models)