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Will Druckenmiller Help Power Coupang Stock Higher?

Published 02/26/2024, 02:22 AM
Updated 07/09/2023, 06:31 AM

Within 45 days of the end of each quarter, institutional inventment managers with at least $100 million in assets under management must file Form 13F with the SEC. Despite the data lag, these filings reveal what stocks these funds and high-profile investors have bought or sold.

The latest filings were released last week and are fascinating for several reasons. These include the difference in the number of stocks held in the portfolios. Some investors concentrate on a few stocks, while others are highly diversified, but even in diversified portfolios, there may be a large holding of one particular stock.

For example, Apple (NASDAQ:AAPL) comprises 50.19% of Warren Buffett’s portfolio, while Stanley Druckenmiller’s portfolio may be more widely spread, but 60% of his portfolio is split between 6 stocks.

It’s well worth keeping up with the 13F filings, as many of the stocks featured in the various portfolios benefit from a boost. However, as I mentioned above, the data is lagged, so we never know when stocks were bought or even if they are still in the portfolio. In addition, any stock mentioned should always be considered through the prism of volume price analysis to see where it is in the price cycle across the slower timeframes.

The reason I highlighted the Druckenmiller portfolio, which, by the way, has $3.4b under management, is that Nividia makes up 16% (split between stock & calls) and Microsoft (NASDAQ:MSFT) 12%. In contrast, a company called Coupang (NYSE:CPNG) makes up 11%, which is intriguing, and since the 13F filings release, the stock has attracted a lot of attention and reports earnings next week.Coupang Inc-Monthly Chart

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In this instance, I want to highlight the weekly and monthly charts, which confirm the stock has consolidated since it fell from its IPO high of $69 in March 2021 to a low of $8.98 in May 2022. The May 2022 candle is a hammer on very high volume and followed a nice anomaly. As we can see on the chart, the stock is in a range but has failed to break through the resistance at the $20 region.Coupang Inc-Weekly Chart

Moving to the weekly chart, we have an expanded and more granular view of the consolidation. We also see the strength of the resistance at $20, a level tested 7 times and held, confirming the stock faces some stiff resistance ahead. However, as the stock is now part of the Druckenmiller portfolio, we can expect it will attract a lot of attention and flows.

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