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Form 13F, filed every quarter, gives investors insight into which stocks and trends are capturing the attention of Wall Street’s top money managers.
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Billionaire Stanley Druckenmiller has exited his investments in AI stocks like Nvidia and Palantir, though his actions might not fully capture the reasons behind his decisions.
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At the same time, the investment head at Duquesne is concentrating on pharma companies that have pivoted towards high-growth projects while overcoming past legal difficulties.
For many in the investing realm, earnings season stands out as a key event each quarter. It’s when a lot of people—investors and analysts alike—immerse themselves as companies in the S&P 500 report their quarterly numbers.
But, truth be told, earnings aren’t the only quarterly happenings that can shed light on valuable investment information. The submission of Form 13F to the SEC is likely just as significant.
This form, which needs to be filed within 45 days of a quarter’s end, allows investors to see what stocks, ETFs, and specific options the industry’s leading fund managers are buying and selling. It’s a straightforward way to discover intriguing stocks and market trends driven by some of the best in the business.
Warren Buffett often steals the spotlight as a go-to money manager, yet he isn’t the only billionaire adept at turning big profits. Stanley Druckenmiller, the head of the Duquesne family office, clearly knows how to uncover promising investments.
What’s quite noteworthy about Druckenmiller’s recent trading moves is his inclination to go against the current. He has completely divested from two of the hottest AI stocks: Nvidia and Palantir, opting instead for pharmaceutical companies that have recently gained momentum.
From a technical standpoint, it’s hard to argue against Nvidia and Palantir—they’re major players in the AI arena. Nvidia’s GPUs are almost universally recognized as the optimal choice for AI-driven data centers, with no real competitors in terms of computational power.
Palantir’s platforms, Gotham and Foundry, also have a unique space in the market, especially given their reliance by the U.S. government and allies for strategic military operations. Despite this, Druckenmiller has sold off substantial positions in both companies. During the third quarter of 2024, he sold all 214,060 shares of Nvidia and, regarding Palantir, liquidated 769,965 shares from July 1, 2024, to March 31, 2025.
Now, at first glance, it would seem logical that his exit was merely a case of profit-taking. After all, the average holding in Duquesne’s $4.1 billion portfolio didn’t linger for more than seven months, suggesting he’s ready to seize opportunity when it arises.
But, maybe there’s more complexity to it than just that.
Back in May 2024, Druckenmiller commented in a CNBC interview that while AI might seem overvalued at present, it is likely to maintain its high valuations over the long term. This remark hints at a consistent trend observed over the past three decades where innovation undergoes significant fluctuation in public perception and market value, AI included.
Druckenmiller might also be wary of Nvidia and Palantir’s skyrocketing valuations. While valuing stocks can be quite subjective, certain metrics, like the price-sales (P/S) ratio, provide clear insights. Historically, P/S ratios exceeding 30 for leading companies often signify unsustainable hype. Recently, Nvidia and Palantir reported P/S ratios of 31 and 152, respectively.
If an AI bubble develops, both stocks could potentially face significant downturns.
Interestingly, while he was busy unloading shares in Nvidia and Palantir, Druckenmiller turned his attention towards pharmaceutical stocks. Notably, Teva Pharmaceutical Industries has now become a major focus.
Teva represents a classic turnaround story, one that has faced numerous challenges over the years, from losing its edge in the MS drug market to legal battles stemming from the opioid crisis.
Yet, things appear to be brightening up for Teva, creating an opening for Druckenmiller. Across the last four quarters, from July 1, 2024, to June 30, 2025, his records indicate substantial purchases:
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Q3 2024: Acquired 1,427,950 shares
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Q4 2024: Acquired 7,569,450 shares
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Q1 2025: Acquired 5,882,350 shares
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Q2 2025: Acquired 1,089,189 shares (Total now held: 15,968,935 shares)
Teva has quickly transformed into Druckenmiller’s second-largest holding, its stock climbing dramatically by 218% since mid-2023.
The most significant driver for Teva’s resurgence seems to be the resolution of its litigation backlog. Settling opioid-related lawsuits with 48 states back in early 2023, which involved a $4.25 billion deal, liberated management to refocus on future strategies.
Under new leadership with turnaround expert Cale Schulz, Teva has streamlined operations, selling off non-essential assets. CEO Richard Francis has since steered the company towards new drug development, recognizing that proprietary therapies, despite having a limited sales exclusivity, often yield much better growth rates and margins compared to generics.
In its recent announcements, Teva has raised its long-term sales projections for Austedo, a treatment aimed at tardive dyskinesia, expected to surpass $2 billion in yearly sales. This shift towards branded pharmaceuticals is offsetting the declines typically seen with generics.
Additionally, the management’s efforts have significantly improved Teva’s balance sheet. Following the Actavis acquisition, net debt exceeded $35 billion but has now dropped below $16.6 billion. This financial easing allows for greater investments in rapidly growing sectors.
With a forward P/E ratio sitting at just 8.6, Teva Pharmaceuticals still appears quite appealing.
But before diving into purchasing Teva stock, it’s wise to consider a few details.
Some analysts have identified stocks they believe might deliver substantial returns, with Teva not making that particular list. The focus is generally on those with better projected growth.
While the stock advisor’s average return impressively sits at 1,036 percent against the S&P 500’s 191 percent performance, it’s essential to engage thoughtfully when evaluating investment opportunities.
