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Stanley Druckenmiller
Adam Jeffery | CNBC
Legendary investor Stanley Druckenmiller said tech giants Amazon and Microsoft are still among his biggest holdings, but he said he’s quite bearish on growth stocks as a group while expectations of the economic reopening boost 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,” the chairman and CEO of the Duquesne Family Office told CNBC’s “Squawk Box” on Monday.
Amazon shares are up more than 34% year to date as the e-commerce behemoth benefited from consumers staying at home during the coronavirus pandemic. Microsoft is another stock that has surged during the outbreak, jumping 42.5% for 2020 through Friday’s close.
Growth stocks — which are characterized by their high growth expectations relative to the broader market — were among the best performers in the early stages of the pandemic. But in recent weeks, the so-called value stocks — which generally have low multiples relative to the market — have taken market leadership amid hopes of a potential coronavirus vaccine and the reopening if the economy.
The iShares Edge MSCI USA Value Factor ETF (VLUE) has surged more than 13.5% over the past month. Its growth counterpart, the iShares MSCI USA Momentum Factor ETF (MTUM) has gained just 4.1% in that period.
Druckenmiller said he could change his current stance on the market but noted he was “way too cautious” as stocks began surging from late-March lows.
He said he was “humbled” by the market, posting a return of just 3% during the market’s more than 40% surge since March 23.
“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.”
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