A Securities and Exchange Commission filing revealed this week that billionaire investor Stanley Druckenmiller placed a bet against the S&P 500 and loaded up on energy stocks.
The S&P 500's Standard & Poor's Depository Receipts (SPDR) exchange-traded fund, which tracks the benchmark S&P, was bought by the Duquesne Family Office.
The investor may have made the wager because he expects the US stock market to fall further.
The S&P 500 is down more than 12% in the second quarter. It is close to a bear market, having fallen 20% from record highs in January. It lost 4% on Wednesday, its biggest loss since the height of the Pandemic.
A bunch of energy and commodity stocks were snapped up by the man. As of March 31, Duquesne owned about 965,000 shares of Chevron. It added the likes of Coterra Energy, Pioneer Natural Resources, Teck Resources, Cenovus Energy, and Antero Resources to its portfolio.
The invasion of Ukraine by Russia has resulted in economic sanctions and disrupted supply chains that were already reeling from the COVID-19 epidemic. Exxon and Chevron, two of the largest US oil companies, reported huge profits in the first quarter because of higher energy prices.
Other high-profile investors have invested in energy stocks. In the last quarter, Warren Buffet's company more than doubled its stake in Chevron, and then invested $7 billion into the company.
A portfolio manager at a billionaire investor says to buy 27 stocks that have the pricing power to deliver returns as inflation soars.
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