Stanley Druckenmiller (Trades, Portfolio) is the President, CEO and Chairman of Duquesne Capital, which he founded in 1981. The fund is reported to have more than $10 billion in assets. He managed money for George Soros (Trades, Portfolio) from 1988 to 2000 as the lead portfolio manager for Quantum Fund. With an estimated current net worth of around $3.5 billion, he is ranked by Forbes as the 91st-richest person in America. He is reported to have made $260 million in 2008.
In the fourth quarter, he bought 16 new stocks reaching a total of 35 stocks with a total value of $1,020 Mil.
He focused his trades on the following four companies:
1) Increased his position in Biogen (BIIB) by 246% with a total impact on his portfolio of 8.53%. Since that trade, BIIB price rose 21%.
BIIB is a biotechnology company that discovers, develops, manufactures and markets therapies for the treatment of multiple sclerosis (MS) and other autoimmune disorders, neurodegenerative diseases and hemophilia.
BIIB is currently trading at 31.70 P/E and 8.57 P/B
BIIB has a financial strength of 9/10 and a profitability of 9/10.
Over the last 5 years, ROE and ROA increased by about 100% with a current ratio for the ROE of 30.22% and ROA of 22.56%
EPS is growing at 31% and the Book Value at 19% (5yrs)
Based on Peter Lynch Value, the company is overpriced by 21% and the DCF model says is overpriced by 11%
2) Increased his position in HDFC Bank (HDB) by 227% with a total impact of 3.48% on his portfolio and since that trade, HDB price rose by 18%.
The company operates in four business segments: Treasury, Retail Banking, Wholesale banking, and Other banking business.
HDB is trading at 31.00 P/E and at 4.53 P/B.
HDB has a financial strength of 6/10 and a profitability of 9/10.
Returns are the best of the Global Banks - Regional - Asiawith a ROE of 17% and a ROA of 2%
Over the last 5 years, the earning per Share grew by 29% and the Book Value by 13%.
Based on Peter Lynch Value, the company is overpriced by 37% and the DCF model says is overpriced by 22%
3) Increased his position in Target (TGT) of 143% with a total impact of 3.36% on his portfolio and since that trade TGT price rose 14%
The Company is engaged in operating general merchandise discount stores in the United States.
TGT is currently trading at 32.10 P/E and 2.98 P/B
TGT has a financial strength of 7/10 and a Profitability of 7/10.
Returns are positive but they are at minimum levels, with a ROE of 9% and a ROA of 3%
Over the last 5 years, the Earnings per Share didn’t grow while the Book Value grew by 5%.
Based on Peter Lynch Value, the company is overpriced by 12% and the DCF model says is overpriced by 184%
4) Bought 430,000 shares of Facebook (FB) with a total impact of 3.3% on his portfolio. Since that trade the price is almost flat, but FB price rose 14% over the last 12 months.
The Company is a social networking website which builds products that creates utility for users, developers, and advertisers. You can see http://www.facebook.com
FB is trading at 68.40 P/E and 5.80 P/B
FB has a financial strength of 9/10 and a Profitability of 8/10.
Returns are the best of Global Internet Content & Information with a ROE of 13% and a ROA of 12%
Based on Peter Lynch Value the company is overpriced by 42% and the DCF model says is overpriced by 374%.
