Stanley druckenmiller (Trades, Portfolio), chairman and CEO of Duquesne Capital, unveiled its portfolio for the third quarter of 2021. Its main activities include a significant reduction of its Microsoft Corp. (MSFT, financial participation), additions to positions in Coupang Inc. (CPNG, financial) and Alphabet Inc. (GOOGL, financial) and the sale of interests in Affirm Holdings Inc. (AFRM, financial) and Netflix Inc. (NFLX, Financial).

Druckenmiller worked for

Georges soros (Trades, Portfolio) from 1988 to 2000 as Senior Portfolio Manager for the Quantum Fund. He founded Duquesne Capital in 1981 and operated as a hedge fund until 2010, but now operates as a family office. Druckenmiller uses a top-down approach that combines long and short positions in all types of assets.

Portfolio overview

At the end of the quarter, the guru’s portfolio contained 49 stocks with 12 new holdings. It was valued at $ 3.08 billion and had a turnover rate of 17%. The main holdings in the portfolio include Coupang, Amazon.com Inc. (AMZN, Financial), Alphabet, Starbucks Corp. (SBUX, financial) and Microsoft.

The main sectors represented in the portfolio are consumer discretionary (43.72%), communication services (21.38%) and technology (20.37%).

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Microsoft

Druckenmiller slashed his Microsoft (MSFT, Financial) holding of 48.43% with the sale of 730,327 shares. The shares sold for an average price of $ 290.90 throughout the quarter. Overall, the sale had an impact of -4.90% on the portfolio and GuruFocus estimates the total gain from the stake at 61.04%.

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Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and its Office productivity suite. The company is organized into three large segments of equal size: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), cloud intelligence (infrastructure and platform- Forms as a service offers Azure, Windows Server OS, SQL Server) and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets and desktops).

On November 26, the stock was trading at $ 334.98 per share with a market cap of $ 2.43 trillion. According to the GF Value Line, the stock is trading at a significantly overvalued rating.

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GuruFocus gives the company a financial strength rating of 7 out of 10, a profitability rating of 9 out of 10 and a valuation rating of 1 out of 10. There is a severe warning sign issued for growing assets faster than income. The company’s stellar profitability rank is supported by operating and net margins that beat at least 96% of industry competitors.

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Microsoft’s other major gurus shareholders (MSFT, financial) include

Ken fisher (Trades, Portefeuille), Pioneer Investments, Primecap Management,

Chase coleman (businesses, portfolio) and Dodge & Cox.

Coupang

The guru also strengthened his fresh-faced Coupang (CPNG, financial). Equity rose 47.46% with the purchase of 4.99 million shares which traded at an average price of $ 34.58 during the quarter. GuruFocus estimates the total loss of the stake at 35.10% and the purchase had a 4.51% impact on the portfolio.

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Coupang Inc is an e-commerce company. The company sells clothing, electronics, shoes, food products, furniture, nutritional supplements and other products.

As of November 26, the stock was trading at $ 27.22 per share with a market cap of $ 47.67 billion. There is currently not enough data to show a GF value line and stock prices have fallen below the starting price of the company.

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GuruFocus gives the company a financial strength rating of 5 out of 10 and a severe warning signal is issued for building up inventory. The company’s cash-to-debt ratio of 1.88 ranks better than 73.49% of industry competitors despite an increase in debt in 2020.

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Lee ainslie (professions, portfolio),

Baillie Gifford (professions, portfolio),

Bill Gates (professions, portfolio),

David Abrams (trades, portfolio) and

Chris Davis (Trades, Portfolio) also own Coupang (CPNG, financial).

To affirm

The quarter also saw Druckenmiller sell his Affirm (AFRM, Financial situation. The 1.37 million shares sold for an average price of $ 79.94 throughout the quarter after two quarters of ownership. The sale had an impact of -2.30% on the entire portfolio and GuruFocus estimates the loss of the guru on the holding at 18.16%.

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Affirm offers a platform for digital and mobile commerce. It includes a point-of-sale consumer payment solution, merchant commerce solutions and a consumer-centric application. The company generates its revenues from merchant networks, and through virtual card networks, among others. Geographically, it generates a significant portion of its turnover in the United States.

The stock was trading at $ 134.99 per share with a market cap of $ 37.93 billion on November 26. The stock rallied in early November to a high of nearly $ 170 per share.

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GuruFocus gives the company a financial strength score of 5 out of 10 and a profitability rank of 1 out of 10. There are no serious warning signs issued for the company and one medium warning sign is issued for insiders who sell stocks. The company has generated increased revenue in recent years, but has failed to pull its bottom line out of the red.

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To affirm (AFRM, Financial) the shares are also held by

Baillie Gifford (professions, portfolio),

Philippe Laffont (Trades, Portfolio), Pioneer Investments,

Chase coleman (trades, portfolio) and

Paul Tudor Jones (trades, portfolio).

Alphabet

Druckenmiller’s alphabet (GOOGL, Financial) also saw a 28.55% increase in the quarter with the purchase of 25,985 shares. The shares traded throughout the quarter at an average price of $ 2,720.51 and saw the guru achieve an estimated total gain of 19.53% on equity. In total, the purchase had an impact of 2.26% on the portfolio.

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Alphabet is a holding company, with Internet media giant Google, as a wholly owned subsidiary. Google generates 99% of Alphabet’s revenue, over 85% of which comes from online advertising. Google’s other revenue comes from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware like Chromebooks, the Pixel smartphone, and smart home products, which include Nest and Google Home, also contribute to other revenue. Alphabet’s lunar investments are in its other betting segment, where it is betting on technology to improve health (Verily), faster internet access at homes (Google Fiber), self-driving cars (Waymo) and more. .

On November 26, the stock was trading at $ 2,843.66 per share with a market cap of $ 1.89 trillion. According to the GF Value Line, the stock is trading at a slightly overvalued rating.

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GuruFocus gives the company a financial strength rating of 8 out of 10, a profitability rating of 9 out of 10, and a review rating of 3 out of 10. There are two serious warning signs for a declining gross margin and a declining operating margin. Alphabet’s cash flow has grown steadily over the past decade, leaving plenty of capital available for its investments on the moon.

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Ken fisher (Trades, Portefeuille), Primecap Management, Pioneer Investments,

Spiros Segalas (trades, portfolio) and

Frank sands (Trades, Portfolio) also maintain positions on Alphabet (GOOGL, Financial).

Netflix

The quarter also saw Netflix (NFLX, Financial) are leveraging the portfolio as Druckenmiller sold the 172,215 shares he bought in the second quarter. The shares traded at an average price of $ 550.68 during the quarter. The sale had an impact of -2.25% on the whole portfolio and GuruFocus estimates the total gain of the stake at 24.55%.

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Netflix’s core business is an on-demand video streaming service now available in almost every country in the world except China. Netflix delivers original and third-party digital video content to PCs, Internet-connected TVs, and consumer electronics. In 2011, Netflix introduced DVD-only packages and separated the combined streaming and DVD packages, forcing subscribers who both want separate packages.

As of November 26, the stock was trading at $ 665.64 per share with a market cap of $ 294.85 billion. A fair value rating is assigned to the share by the GF Value Line.

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GuruFocus gives the company a financial strength rating of 5 out of 10, a profitability rating of 8 out of 10, and a valuation rating of 2 out of 10. There are two serious warning signs for growing assets. fast as income and a Beneish M- Score indicating that the company can manipulate its financial data. Prior to 2011, Netflix showed high capital efficiency, but struggled for most of the past decade.

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The other major gurus shareholders of Netflix (NFLX, financial) include

Baillie Gifford (professions, portfolio),

Frank sands (professions, portfolio),

Ken fisher (professions, portfolio),

Spiros Segalas (trades, portfolio) and

Chase coleman (trades, portfolio).