Stanley Druckenmiller’s basket is missing a golden egg.
You may remember that the billion investor caused a bit of stir not too long ago when he revealed that he had reduced his position in AI chip juggernaut Nvidia (NVDA) .
Related: Stanley Druckenmiller offers bold view on stocks, election
Druckenmiller, who admitted that he didn’t know how to spell Nvidia, bought shares in fourth-quarter 2022 at the urging of his partner.
He had picked up the stock just one month before OpenAI unleashed the AI chatbot ChatGPT on the world. He said, “Even an old guy like me could figure out what that meant, so I increased the position substantially.”
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Druckenmiller is something a legend in investment circles.
He managed money for the investor and philanthropist George Soros from 1988 to 2000 as the lead portfolio manager for Quantum Fund.
Their most celebrated play was a bet against the British pound in 1992. Commentators said they “broke the Bank of England,” reportedly hauling in $1 billion in the process.
Stanley Druckenmiller, chairman and chief executive officer of Duquesne Family Office, makes some significant changes to his portfolio. Photographer: Jeenah Moon/Bloomberg via Getty Images
Druckenmiller watches investments carefully
He is former chairman and president of Duquesne Capital, which he founded in 1981 and closed in 2010 when it had more than $12 billion in assets.
In 2011, he established the wealth-management firm Duquesne Family Office, so, yeah, the guy’s been around the block a few times.
Related: Nvidia stock slides as outlook clouds massive Q3 earnings surge
“I like putting all my eggs in one basket and then watching the basket very carefully,” Druckenmiller once said.
He said he cut Duquesne Family Office’s position in Nvidia in late March, saying he needed a break.
“I’ve made so many mistakes in my investment career,” he told Bloomberg last month. “One of them was I sold all my Nvidia (shares). … I own none. … It was a big mistake in terms of AI.”
What does that have to do with the price of eggs?
Well, Nvidia, which reported earnings after the market closed on Nov. 20, recently overtook Apple AAPL to become the world’s most valuable company. And Nvidia’s stock has climbed nearly 193% from a year ago.
“I think Nvidia is a wonderful company and were the price to come down we would get involved again, but right now I’m licking my wounds from a bad sale there,” Druckenmiller said.
But the billionaire has moved on, and in the third quarter, Duquesne Family Office established 31 new U.S. common stock positions, according to the most recent 13 F filing.
Duquesne fully unloaded 22 different common stocks in the quarter, including Nvidia and infusion therapy company Option Health Care (OPCH) .
Broadcom makes a big bet on another AI play
The Druckenmiller’s family office held 73 different common stocks totaling about $2.4 billion at the end of the third quarter.
Related: Analysts reset Broadcom stock forecast on AI update
Among them, Duquesne’s second-largest new position: The semiconductor maker Broadcom (AVGO) . Druckenmiller bought 239,980 shares, representing about 1.4% of the portfolio.
The San Jose, Calif.-based company’s shares are 44% year-to-date, and the stock has climbed nearly 65% from a year ago.
Broadcom, which is scheduled to report earnings next month, completed its $69 billion acquisition of the cloud computing firm VMware last year.
More Tech Stocks:
Analysts revise Intuitive Machines stock price target after earningsNvidia earnings on deck as AI kingpin tightens grip against rivalsAnalysts revamp Cisco stock price targets after earnings
The company is reportedly working with semiconductor maker OpenAI to develop a new AI chip specifically focused on running AI models after they’ve been trained.
Earlier this month, Bank of America Securities reiterated its buy rating and $215 price target for Broadcom, based on “continued AI compute, networking leadership, recurring enterprise software, and industry-leading FCF (free cash flow) generation.”
In addition, the SPDR S&P Regional Banking (KRE) exchange-traded fund is now Duquesne’s seventh-largest U.S. common stock long position.
Duquesne also sold about 90% of its software giant Microsoft (MSFT) shares after parting company with roughly 64% of its stake in the second quarter.
And it cut its ownership of Texas-based Vistra Energy Corp. (VST) by 6.2%.
Related: Veteran fund manager sees world of pain coming for stocks
