30% of Billionaire Stanley Druckenmiller's Portfolio Is Invested in These 3 Biotech Stocks

When you look at most hedge funds these days, their portfolios are littered with artificial intelligence (AI) stocks. After all, AI has driven the market higher for the past three years.

While billionaire Stanley Druckenmiller owns plenty of AI and tech stocks, his fund's top three holdings lie in the biotech sector. The sector can be challenging for most retail investors without a science background to invest in, and it's also highly speculative. But Druckenmiller is undoubtedly one of the best to ever do it.

The George Soros protege has generated legendary returns for decades, so it's hard not to take stock in where Druckenmiller is investing. Three biotech stocks in his private investment firm, Duquesne Family Office, make up 30% of the entire portfolio.

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Natera -- 13%

Duquesne owned over 3.2 million shares of Natera (NASDAQ: NTRA) valued at over $517 million at the end of the third quarter. While not an AI company, Natera leverages artificial intelligence to try and discover diseases and conditions in humans earlier in their life cycles. The earlier a person becomes aware of a condition, the more likely they are to be able to address it effectively.

Natera currently focuses much of its efforts on women's health issues, oncology, and organ health. The company's state-of-the-art tech platform looks for circulating cell-free DNA (cfDNA); it can detect a single molecule in a tube of blood by pairing new biology practices with bioinformatics. The platform is used to administer a noninvasive test for pregnancy detection, as well as the first blood test to detect tumor-specific DNA, among other groundbreaking tools.

Natera has performed well, with the stock up 48% this year as of Nov. 25. The company has increased testing on several of its products and grown revenue 35% through the first nine months of 2025, compared to the same time last year. Losses have also increased due to high research and development, as well as administrative expenses. Management raised annual revenue guidance for 2025 by $160 million. While the stock is expensive at close to 15 times forward revenue, the company is working on game-changing molecular testing, so right now I'd classify this one as a more speculative play with big reward potential.

Insmed -- 8.6%

At the end of the third quarter, Duquesne owned over 2.4 million shares of Insmed (NASDAQ: INSM) valued at roughly $349 million. Insmed is a global pharmaceutical company dedicated to developing and commercializing a range of drugs and treatments. Currently, two of its drugs have reached commercialization, with several others in the pipeline.

Arikayce is an antibiotic for the treatment of Mycobacterium avium complex (MAC), a chronic lung disease that in some cases can prove fatal, although there are both mild and harder-to-treat types of MAC. Insmed's other commercial drug is Brinsupri, the first and only treatment approved by the U.S. Food and Drug Administration (FDA) for non-cystic fibrosis bronchiectasis (another chronic lung condition) in people age 12 and above.

The stock has done incredibly well, and is up nearly 200% year to date. Part of that is due to Arikayce's 21% revenue growth so far this year. The FDA also approved Brinsupri, which is now generating revenue. The company has a solid track record, and other drugs in the pipeline starting to move through clinical trials. If you're interested in buying shares, understand that investing in biotech stocks typically requires conducting due diligence on pending drugs and how likely they are to achieve commercialization.

Teva Pharmaceutical -- 8.3%

Druckenmiller's third-largest position is Teva Pharmaceutical Industries (NYSE: TEVA). Duquesne owned approximately 16.6 million shares, valued at roughly $335.2 million, at the end of the third quarter. Teva manufactures a wide array of commonly used drugs; these include Austedo for neurodegenerative and movement disorders typically found in people with Huntington's disease, as well as Ajovy to treat adult migraines, and many other drug treatments for cancer, asthma, and chronic obstructive pulmonary disease (COPD).

The stock has performed solidly; it's up more than 17% this year. In the third quarter, Teva grew total revenue by approximately 3% year over year to nearly $4.5 billion. The company has also swung profitable on a GAAP (generally accepted accounting principles) basis, and has grown earnings on an adjusted (non-GAAP) basis.

Teva also has a robust pipeline of drugs nearing commercialization. Two drugs it's working on to treat schizophrenia and ulcerative colitis reached phase 3 clinical trials, while one of its drugs for multiple system atrophy (MSA) received an FDA "fast track" designation.

The stock appears reasonably valued, trading at 1.7 times forward revenue and approximately 9.5 times forward earnings. Revenue isn't showing extreme growth right now, but earnings are moving higher, and the commercialization of new drugs should help on both fronts. This may be a safer biotech stock to buy right now.

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.