Druckenmiller is still betting on Amazon and Microsoft but is overall bearish on growth stocks


Stanley Druckenmiller

Adam Jeffery | CNBC

Legendary investor Stanley Druckenmiller said tech giants Amazon and Microsoft are still among his biggest holdings, but noted he is quite bearish on growth stocks as a group. 

“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,” Druckenmiller, founder of Duquesne Capital, told CNBC’s “Squawk Box” on Monday. “As always, I’m staying flexible, but I’ve been far too cautious.”

Amazon shares are up more than 34% year to date as the e-commerce behemoth benefited from consumers staying at home amid the coronavirus pandemic. Microsoft is another stock that has surged amid the outbreak, surging 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 economy reopening. 

“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.”

Last month, Druckenmiller said he did not like how the market was set up, noting: ”The risk-reward for equity is maybe as bad as I’ve seen it in my career.”

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