Following legendary investors in their trades is often the best way for novice traders to learn the skill of stock trading. Stanley Druckenmiller, a billionaire investor, and CEO of Duquesne Family Office, is one of the best in the business.
He recently returned to Palantir (NYSE: PLTR) stock, purchasing 770,000 shares at an average price of $21.30, for a total of $16.4 million invested, as disclosed in his 13F filing on May 15.
Druckenmiller first purchased shares of the big data analytics company in Q1 2021, shortly after its initial public offering (IPO). His initial investment was 5.98 million shares, significantly larger than his current position.
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He decided to cash in when PLTR shares hit $8 and reinvested the profits into Nvidia (NASDAQ: NVDA) when its shares were priced at $150.
The cycle is repeating, but the roles between Nvidia and Palantir have switched.
Nvidia and Palantir cycle repeats, but the roles are reversed
Duquesne Family Office adjusted several of its preexisting holdings in the first quarter. Notably, Druckenmiller reduced his stake in Nvidia by about 900,000 shares, leaving him with around 176,000 by the end of March.
Earlier this month, he pared down his Nvidia position because he felt that while the AI trend is currently ‘a little overhyped,’ it is ‘underhyped long term.’
Part of this profit was reinvested in Palantir, whom Druckenmiller particularly likes after meeting with its CEO Alex Karp in 2022 and calling him a visionary, remarkably similar to Steve Jobs.
Druckenmiller is a short to medium-term investor
Druckenmiller is a short—to medium-term investor. His average 13F holding period is 2.29 quarters, meaning he quickly takes profits while hopping on to the next trend.
While Druckenmiller’s 13F allocation to PLTR stock is relatively low, he could soon invest more or divest completely, depending on market sentiment and the probability of profit-taking.
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