Tags: druckenmiller | amazon | microsoft | growth | stocks

Druckenmiller Still Bets on Amazon, Microsoft, Bearish on Growth Stocks

By    |   Monday, 08 June 2020 08:55 AM

Investment guru Stanley Druckenmiller said tech giants Amazon and Microsoft are still among his biggest holdings, while warning he is bearish on growth stocks as a group while economic reopenings lift value stocks.

“I have still something like Amazon and Microsoft in my largest holdings, but I have the least growth weighting in my portfolio that I’ve had in maybe six or seven years,” Druckenmiller, chairman and CEO of the Duquesne Family Office, told CNBC.

Amazon shares (AMZN) are up more than 34% year to date as the e-commerce behemoth benefited from consumers staying at home amid the coronavirus pandemic. Microsoft (MSFT) has surged more than 40%.

But in recent weeks, value stocks have taken market leadership amid hopes of a potential coronavirus vaccine and the economy reopening.

Druckenmiller said he could change his current stance on the market, but noted he was “way too cautious” as stocks began surging from its late-March lows.

He said the market’s strong performance over the last three weeks has “humbled” him and that he underestimated the power of the Federal Reserve.

“I had long-term concerns for the last few years that because of easy money, too much debt was being built up in the corporate sector,” Druckenmiller said on “Squawk Box.” “When Covid hit, I was pretty much of the view that there was a good chance that the credit bubble had finally burst and the unwinding of that leverage would take years.”

“I think it’s a fascinating time where, if you get a vaccine say by January or February, you get one distinct outcome within the market,” Druckenmiller said. “If you don’t get a vaccine for a year or two, you get another distinct outcome within the market.”

“Then you’ve got all the stimulus plans,” Druckenmiller added. “If they deliver in July, you get one outcome. If they don’t, liquidity falls off a cliff and you get another outcome.”

Meanwhile, prominent U.S. fund managers piled into big-name technology stocks and bottom-fished in the beaten-down energy sector as markets reeled from the coronavirus-fueled selloff in the first quarter, Reuters reported, citing regulatory filings.

They also cut exposure in restaurants, retail and airlines as the mounting number of deaths from the coronavirus -- which have now topped 86,000 in the United States -- forced shutdowns of virtually all nonessential businesses in most U.S. states.

Technology giants including Microsoft Corp, Amazon.com Inc, Apple Inc, Google owner Alphabet Inc and Facebook Inc saw fresh buying from fund managers as their earnings were expected to stay comparatively steady this year. Hedge funds Viking Global Investors, Maverick Capital, Moore Capital Management and Arrowstreet Capital all increased their positions in Microsoft, which reported sharp demand for its Microsoft Teams product as offices and schools transitioned online as stay-in-place orders forced Americans to work and study from home.

Druckenmiller's Duquesne Family Office increased its holding in Amazon by 713%. Amazon shares hit an all-time high on April 30 thanks in part to rising demand for consumer products at a time when many small retailers have closed. Druckenmiller also raised his investment in Facebook by 75%, the filing shows.

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Investment guru Stanley Druckenmiller said tech giants Amazon and Microsoft are still among his biggest holdings, but noted he is quite bearish on growth stocks as a group while expectations of the economy reopening boost value stocks.
druckenmiller, amazon, microsoft, growth, stocks
Monday, 08 June 2020 08:55 AM
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