The Billionaire Who Doesn’t Lose Just Invested $207 Million In This Biotech Stock
So it’s Thanksgiving dinner. The turkey’s juicy, the gravy’s flowing, and your grandma leans in, asking the annual question: “How’s your portfolio doing, sweetheart?” For most of us, this is where we mumble something about “playing the long game” and hope she doesn’t press further. But for billionaire investor Stanley Druckenmiller? He can look grandma straight in the eye and say, “I’ve never lost money.”
Druckenmiller’s track record is the stuff of Wall Street legend. Over 30 consecutive years, his hedge fund, Duquesne Capital Management, experienced 30% annualized returns (without a single down year). Compare that to Warren Buffett’s Berkshire Hathaway, which clocks in at just under 20% annually, or the S&P 500’s modest 10% average. Druckenmiller’s performance gives him his own wing in the hall of fame.
But even the GOATs can stumble. Druckenmiller recently admitted he botched his timing with Nvidia… selling off before Huang’s AI-chip behemoth reported blowout results. But hey, when your net worth is hovering around $10 billion, you’ve got room for a mulligan.
These days, Druckenmiller’s attention has shifted to biotech. According to his latest SEC 13F filing, he increased his position in Natera by 80%, bringing his total investment to $207.9 million and making it his largest U.S. common stock holding. Why the sudden interest in genetic testing? Because Druckenmiller knows how to spot a winner long before the crowd catches on.
As he once put it: “What a company’s been earning doesn’t mean anything. What you have to look at is what people think it’s going to earn.” His strategy is simple: find the companies that are quietly rewriting the rules. And Natera fits that bill perfectly.
Natera specializes in noninvasive cell-free DNA testing (a fancy way of saying they can analyze tiny fragments of DNA in blood to detect genetic abnormalities, chromosomal disorders, and even cancer). Their new Signatera tests are helping oncologists track and treat cancer like never before.
And the numbers? Chef’s kiss. In the third quarter, Natera posted a 64% revenue jump to a record $439.8 million, blowing past expectations. Shares have soared 168% year-to-date, tripling from a year ago. Wall Street analysts are losing their minds:
For instance, JP Morgan upped its price target from $135 to $160, calling Natera one of the “highest quality companies” in diagnostics. Canaccord went from $150 to $165, staying “highly bullish”... And even Baird raised its target to $160, noting broad-based momentum, especially in women’s health and oncology.
Druckenmiller isn’t one to chase hype. He credits much of his success to lessons learned from legendary investor George Soros, the guy who once famously broke the Bank of England. And right now, his conviction lies in biotech’s transformative potential. (Let’s hope that’s the only thing he learned from old George.) And I’d say the Natera trade is looking like another winner so far, considering the stock is up 36% in just the last month.
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Stock.News does not have positions in companies mentioned.