Billionaire investor Stanley Druckenmiller made some big moves in his portfolio last quarter. He slashed his stake in Nvidia by 72% as the stock nearly doubled. However, he also made some bullish moves, initiating a new position in small caps and adding to his exposure to copper.
Billionaire investor Stanley Druckenmiller reduced his stake in Nvidia, a popular AI company, by 72% in the first quarter. His Duquense Family Office sold over 441,000 shares of Nvidia. Druckenmiller’s office manages around $4.4 billion.
Renowned investor Stanley Druckenmiller has decided to cash in on his Nvidia investment, which has turned out to be a huge success for him. Druckenmiller initially bought Nvidia shares in the fourth quarter of 2022 at an average price of around $184 per share. Since then, the stock has soared by a remarkable 391% by the end of the first quarter. Despite selling a significant portion of his Nvidia stake, it remains the 7th largest position in his portfolio as of March 31, valued at approximately $159 million.
Renowned investor Stanley Druckenmiller has sold all of his call options in Nvidia, a popular semiconductor company. He bought these options in the previous quarter for around $242 million. With Nvidia’s stock surging 82% in the first quarter of this year, Druckenmiller’s trade likely generated significant profits.
Druckenmiller, a renowned investor, has recently made some big trades. One of them is a $664 million bet on small cap stocks through call options on the Russell 2000. This is the largest position in his portfolio. He also has significant positions in Microsoft, valued at $468 million, and South Korean e-commerce company Coupang, valued at around $400 million. Additionally, he has nearly tripled his position in copper miner Freeport McMoRan, which is now worth about $65 million.
Billionaire investor Stanley Druckenmiller is placing his bets on copper and small-cap stocks, indicating his positive view on the US economy.
During an interview at the recent Sohn Investment Conference, Druckenmiller mentioned his interest in a potential long-term uptrend in the copper market. However, he also stated that he would be patient and wait for more favorable economic conditions before increasing his exposure to copper.
Druckenmiller’s move suggests that he believes the US economy has the potential for a smooth recovery, leading to increased demand for copper and small-cap stocks.
Investing in small cap stocks is often seen as a positive move, as it can indicate confidence in the US economy and lower interest rates. Small cap stocks tend to perform well when the US economy is growing, and they can benefit even more from lower interest rates.