Stanley Druckenmiller's Top Holding Has Outperformed Its Sector By 252%

Billionaire Stanley Druckenmiller, a former confidant of George Soros and the founder of Duquesne Capital, built his career off making large, measured bets. His latest large wager has paid off.

The famed investor has steadily increased his stake in Natera Inc (NASDAQ:NTRA), a clinical genetic testing company, since the third quarter of 2022, according to quarterly 13F filings. Druckenmiller owned 414,955 shares in 2022’s third quarter, 893,030 shares in 2023 and 3,566,850 shares in 2024.

Druckenmiller’s position now exceeds $575 million, nearly 3% of the Austin, Texas-based company’s market capitalization and 15% of Duquesne Capital’s portfolio.

Since Duquesne Capital revealed its stake in a 13F filing, its stock has traded up 268%. Meanwhile, the healthcare industry as a whole, as measured by the iShares US Healthcare ETF (NYSE:IYH), has risen a touch over 16%. Thus, Druckenmiller’s gamble has outperformed its sector by over 250%.

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Natera specializes in genetic testing and diagnostics to improve healthcare outcomes. The company develops and markets tests that analyze DNA to provide insights into hereditary conditions, reproductive health, organ transplant health, and oncology.

Natera's flagship products include non-invasive prenatal tests (NIPTs) like Panorama, which screens for chromosomal abnormalities in a fetus, and Horizon, a carrier screening test for hereditary conditions.

In recent years, Natera has expanded its focus to oncology and organ transplant monitoring. In oncology, the company's Signatera test detects minimal residual disease (MRD) in cancer patients, helping to guide treatment decisions and monitor for recurrence with precision.

In the transplant space, the Prospera test assesses organ health by measuring donor-derived cell-free DNA, providing early indications of transplant rejection.

The company has beaten earnings and revenue expectations over the past four quarters. Revenue has increased from $625 million in 2021 to $1.5 billion over the past twelve months, while margins have also expanded. The company has posted a positive operating cash flow since March.

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Image created using artificial intelligence via Midjourney.