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Quarterly-filed Form 13Fs can clue investors into which stocks and trends are piquing the interest of Wall Street’s brightest money managers.
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Billionaire Stanley Druckenmiller dumped his fund’s holdings in artificial intelligence (AI) stocks Nvidia and Palantir — and profit-taking may not tell the full story.
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Meanwhile, Duquesne’s investment chief loaded up on a drug developer that’s shifted its focus to higher-growth initiatives and has put its legal headwinds firmly in the back seat.
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10 stocks we like better than Teva Pharmaceutical Industries ›
For many investors, earnings season is viewed as the most-telling event of each quarter. This is the six-week period where a majority of S&P 500 companies lift the hood on their quarterly operating results for Wall Street and investors.
But this isn’t the only quarterly event that can provide investors with invaluable information. The filing of Form 13Fs with the Securities and Exchange Commission is, arguably, just as important.
A 13F is a required filing no later than 45 calendar days following the end to a quarter that allows investors to track which stocks, exchange-traded funds (ETFs), and select options Wall Street’s brightest money managers have been buying and selling. It’s an easy way to clue investors into the stocks and trends piquing the interest of the market’s most successful fund managers.
Though Warren Buffett is, commonly, the most-followed of all asset managers, he’s far from the only billionaire with a knack for generating outsize returns. Duquesne Family Office’s billionaire boss, Stanley Druckenmiller, knows a thing or two about spotting a good deal.
What’s been particularly interesting about Druckenmiller’s trading activity in recent quarters has been his willingness to play the contrarian. He’s completely sold out of two of Wall Street’s hottest artificial intelligence (AI) stocks, Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR), and absolutely loaded up on shares of a previously struggling drug stock that’s now soaring.
In terms of hardware and application, a strong argument can be made that Nvidia and Palantir are the two biggest success stories in the AI arena. Nvidia’s AI-graphics processing units (GPUs) are the top option for businesses operating AI-accelerated data centers, with no external competitors coming particularly close to matching the compute abilities of its chips.
Meanwhile, Palantir’s Gotham and Foundry software-as-a-service platforms have no one-for-one replacements, which ensures steady operating cash flow and double-digit sales growth. Gotham is Palantir’s primary moneymaker, with the U.S. government and its allies relying on this AI-driven platform to plan and oversee military operations.
In spite of these competitive advantages, billionaire Stanley Druckenmiller sent both stocks packing, During the third quarter of 2024, Duquesne’s investment chief dumped all 214,060 shares held of Nvidia. As for Palantir, 769,965 shares were given the boot between July 1, 2024, and March 31, 2025.
It’s certainly plausible and logical that Druckenmiller’s exit of Nvidia and Palantir stocks had to do with simple profit-taking. The average security in Duquesne Family Office’s $4.1 billion investment portfolio has been held less than seven months, which demonstrates a willingness for Druckenmiller to take profits when the opportunity presents itself.
But there may be more here than meets the eye.
In May 2024, Druckenmiller noted in an interview with CNBC that, “AI might be a little overhyped now, but underhyped long term.” This statement points to the trend that every game-changing technology and hyped innovation for the last 30 years, including the internet, has navigated its way through an early innings bubble. Investors persistently overshoot when it comes to forecasting the early utility and adoption rates of new technologies, and artificial intelligence is unlikely to be the exception.
Billionaire Stanley Druckenmiller may have also been concerned about Nvidia’s and Palantir’s rapidly rising valuations. Although valuing stocks is a subjective process, the time-tested price-to-sales (P/S) ratio has left little room for interpretation when it comes to evaluating Wall Street’s AI darlings.
History tells us that P/S ratios above 30 for megacap/market-leading businesses on the leading edge of a next-big-trend aren’t sustainable. In fact, they typically signal the presence of a bubble. As recently as last week, Nvidia’s and Palantir’s P/S ratios hit 31 and 152, respectively.
If an AI bubble forms and bursts, both stocks would have proverbial bullseyes on their backs.
But while Duquesne Family Office’s billionaire chief was busy disposing of his fund’s entire stakes in Nvidia and Palantir, he was concurrently buying shares of pharmaceutical stock Teva Pharmaceutical Industries (NYSE: TEVA) hand over fist.
Teva is the textbook definition of a contrarian play and turnaround stock. For a nearly eight-year period, everything that could go wrong did go wrong for the company and its shareholders. It lost exclusivity on its then-blockbuster multiple sclerosis drug Copaxone, witnessed its pricing power on generic drugs deteriorate, and faced a host of litigation, including its role in the opioid crisis.
However, these gray clouds have begun to clear, which has paved a path for billionaire Stanley Druckenmiller to pile in. Over the four-quarter period between July 1, 2024 and June 30, 2025, Duquesne’s 13Fs show:
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Q3 2024: 1,427,950 shares purchased
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Q4 2024: 7,569,450 shares purchased
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Q1 2025: 5,882,350 shares purchased
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Q2 2025: 1,089,189 shares purchased (15,968,935 total shares held)
Teva has quickly become the second-largest holding in Druckenmiller’s fund, and its shares have rallied a cool 218% since the midpoint of 2023.
Perhaps the biggest catalyst for Teva was pushing outstanding litigation into the back seat. In early 2023, it settled its opioid case with 48 states. The $4.25 billion agreement is spread over 13 years and includes $1.2 billion worth of generic Narcan, the opioid overdose reversal drug, which Teva will supply to states. With this settlement now concrete, Teva’s management was able to look to the future and begin transforming.
Under former CEO and turnaround specialist Kare Schultz, Teva became leaner and sold some of its non-core assets. With CEO Richard Francis now at the helm, the company has gone on the offensive. Francis has shifted some of Teva’s focus away from generics and toward novel-drug development. Even though in-house therapies have finite periods of sales exclusivity, the growth rates and operating margin associated with brand-name drugs is notably higher than volume-driven generic therapies.
In Teva Pharmaceutical’s latest operating results, it once again raised its full-year and longer-term peak sales outlook for tardive dyskinesia drug Austedo, which should now top $2 billion in full-year revenue. This push toward brand-name therapies is more than offsetting generic-drug price weakness.
Furthermore, Teva’s management has done wonders with the company’s balance sheet. Shortly after the acquisition of Actavis, net debt surpassed $35 billion. As of Sept. 30, net debt clocked in below $16.6 billion. There’s now more financial flexibility to invest in faster growing initiatives.
With a forward price-to-earnings ratio of just 8.6, Teva Pharmaceutical still appears to be a bargain.
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Sean Williams has positions in Teva Pharmaceutical Industries. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.
Billionaire Stanley Druckenmiller Sold His Fund’s Entire Stakes in Nvidia and Palantir for a Scorching-Hot Drug Stock That’s Up 218% Since Mid-2023 was originally published by The Motley Fool