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Billionaire investor Stanley Druckenmiller added a large guess in opposition to the S & P 500 within the first quarter, whereas piling right into a slew of vitality names throughout the market turmoil. Duquesne Household Workplace purchased 2,396 put contracts of the SPDR S & P 500 ETF (SPY) within the first quarter, based on a regulatory submitting. Every choices contract is tied to 100 shares of inventory, so Druckenmiller’s guess was tied to 239,600 shares of the ETF, which had a notional worth of $108 million on the finish of March. The notional worth would make this guess one among Duquesne high 10 holdings. A put choice provides the proprietor the best to promote a safety at a sure time for a sure value and so it will increase in worth if the inventory declines under the strike value. If Druckenmiller held these put choices by means of the present quarter, the guess can be profitable because the S & P 500 has dropped almost 14% to date within the second quarter. The inventory market has been in turmoil as buyers grappled with decades-high inflation, tightening financial coverage, the conflict in Ukraine and Covid lockdowns in China. In addition to these put choices, Duquesne constructed a brand new stake in Canadian mining firm Teck Assets , value $98 million on the finish of March, based on the submitting. The brand new guess was Drukenmiller’s seventh-biggest holding as of the top of the primary quarter. Greenlight Capital’s David Einhorn can be an investor in Teck as an inflation play, betting on a rise in base metallic costs. The miner has seen its inventory rally greater than 40% this yr. Druckenmiller additionally picked up various vitality names final quarter, together with Coterra Power , Pioneer Pure Assets , Cenovus Power , Antero Assets , Phillips 66 and Solaredge Applied sciences . Power has been a standout winner this yr on the again of hovering oil costs. The S & P 500 vitality sector is the one group that is risen this yr, rallying 46%. Druckenmiller as soon as managed George Soros’ Quantum Fund and shot to fame after serving to make a $10 billion guess in opposition to the British pound in 1992. He later oversaw $12 billion as president of Duquesne Capital Administration earlier than closing his agency in 2010.
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