Druckenmiller sold Big Tech in the bear market as Soros plunged back

(Bloomberg) – Stanley Druckenmiller’s family office took a different approach than the investment firm of his former mentor, George Soros, as U.S. stocks entered a bear market and hit 2022 lows.

Druckenmiller’s Duquesne Family Office sold its entire $199 million position in Amazon.com Inc. in the three months through June, while trimming its stake in Microsoft Corp., according to File 13F. the company on Monday. Unloading big tech was also a theme for the legendary investor in the first quarter, when the company sold about $274 million worth of Alphabet Inc stock.

Soros Fund Management, on the other hand, increased its holdings in Amazon, Salesforce Inc. and Alphabet in the second quarter, with all three ranking among its top 10 holdings at the end of June. The company also added a new $20 million position in Elon Musk’s Tesla Inc., though that’s only about 0.4% of Soros’ $4.6 billion US equity portfolio.

Read more: Soros recharges on Big Tech with Amazon, Google and New Tesla Bet

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

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

“My best guess is that we’ve been in a bear market for six months,” Druckenmiller said June 9 at the 2022 Sohn Investing Conference. . But I think it’s very, very likely that the bear market has a way of working.

Read more: Druckenmiller warns ‘bear market has ways to work’ as Fed rises

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

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

Iconiq uses its network to invest globally in startups, including Procore Technologies Inc. ahead of its IPO last year. The cloud-based construction software company accounts for nearly a quarter of its $8.4 billion US equity portfolio.

David Tepper’s Appaloosa Management increased its stake in Meta Platforms, which fell 34% in the first quarter and another 27.5% in the three months to June. It reduced its exposure to Alphabet, Amazon and Microsoft.

Other billionaire family offices have made more modest changes amid market turmoil.

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

The company added no new positions, but sold funds including the iShares MSCI Japan ETF (ticker: EWJ) and the Vanguard Small-Cap Value ETF (ticker: VBR). He also sold a small stake in Coinbase Global Inc.

Wildcat Capital Management, the family office of David Bonderman, added a new $10.2 million position in Global-e Online Ltd., while selling Datto Holding Corp., which was acquired by Kaseya Ltd. in a deal valued at around $6.2 billion.

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

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