Druckenmiller sold big tech in a bear market while Soros Dove is back

(Bloomberg) — The family office of Stanley Druckenmiller took a different approach from the investment firm of its former mentor, George Soros, as US stocks entered a bear market and reached their lowest levels in 2022.

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Druckenmiller’s Duquesne Family Office has sold its entire $199 million position to Amazon.com Inc. In the three months through June, while trimming its stake in Microsoft Corp. , according to the company’s 13F filing on Monday. The big tech dump was a topic for the legendary investor in the first quarter as well, when the company dumped about $274 million of Alphabet Inc stock.

By contrast, Soros Fund Management has boosted its stakes in Amazon and Salesforce Inc. and Alphabet in the second quarter, with it ranked among the top 10 holdings as of the end of June. The company also added a new $20 million position in Elon Musk’s Tesla Inc. , although this represents only 0.4% of Soros’s $4.6 billion US equity portfolio.

Read more: Soros refreshes Big Tech with Amazon, Google, and the New Tesla Bet

The S&P 500 fell more than 16% in the second quarter, while the tech-heavy Nasdaq 100 fell about 22%, as investors worried the Fed would tighten monetary policy enough to cause a recession as it fends off the highest inflation in decades.

Markets have been more optimistic lately. The S&P 500 is up about 18% from its mid-June low.

“My best guess is we’ve entered six months of a bear market,” Druckenmiller said on June 9 at the 2022 Sohn Investment Conference. “For those who are trading tactically, the first phase of that is probably over. But I think it is highly likely that the bear market has ways to run.”

Read more: Druckenmiller warns ‘bear market has ways to run’ as Fed rates rise

Duquesne added some new jobs in the second quarter: $96.3 million at Eli Lilly & Co. and $38.7 million in Crowdstrike Holdings Inc. and $29.7 million in Moderna Inc.

Iconiq Capital, a multi-family office that has billionaire clients in Silicon Valley, including Mark Zuckerberg, Sheryl Sandberg, Jack Dorsey and Reid Hoffman, also added to his tech positions. The company announced a new $275 million position in DoorDash Inc. In the second quarter, with the addition of stakes in companies including Alphabet and Meta Platforms Inc.

Iconiq uses its network to invest globally in startup companies, including Procore Technologies Inc. before the IPO last year. The cloud-based construction software company makes up nearly a quarter of the $8.4 billion US equity portfolio.

Appaloosa management added David Tepper to its stake in Meta Platforms, which fell 34% in the first quarter and another 27.5% in the three months to June. Reduced exposure to Alphabet, Amazon and Microsoft.

The billionaire’s other family offices have made more modest changes amid the market turmoil.

The Walton family investment firm, which buys and sells mostly low-cost exchange-traded funds, has added to its emerging market equity position through the iShares Core MSCI Emerging Markets ETF (stock symbol: IEMG). The fund now makes up 12.6% of WIT LLC’s $4 billion US equity portfolio.

The company didn’t add any new deals, but it sold off funds including the iShares MSCI Japan ETF (stock ticker: EWJ) and the Vanguard Small-Cap Value ETF (stock ticker: VBR). It also exited a small stake in Coinbase Global Inc.

Wildcat Capital Management, David Bonderman’s family office, has added a new $10.2 million position at Global-e Online Ltd. , during the sale of Datto Holding Corp. , which was acquired by Kaseya Ltd. In a deal worth about $6.2 billion.

Hong Kong-based Blue Pool Capital, which manages part of the fortunes of the founders of Alibaba Group Holding Ltd. Joe Tsai and Jack Ma, a $8 million stake in Mirion Technologies Inc. in the second quarter. Its $491 million equity portfolio is now fully invested in Blue Owl Capital.

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