Although earnings season is chock-full of important data for investors to digest, an argument can be made that the quarterly filing of Form 13Fs is equally important. A 13F provides investors with a concise snapshot of which stocks Wall Street’s smartest money managers bought and sold in the latest quarter (in this case, the fourth quarter).
On Feb. 17 (the filing deadline for fourth-quarter trading activity), billionaire Stanley Druckenmiller of Duquesne Family Office filed his fund’s 13F. While it unveiled sizable increases in Druckenmiller’s respective stakes in “Magnificent Seven” stocks Amazon and Alphabet (specifically the class A shares, GOOGL), it’s a new holding that’s stolen the show: the Invesco S&P 500 Equal Weight ETF (RSP 1.32%).
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Are things looking not so magnificent for the Magnificent Seven?
The S&P 500 (^GSPC 1.36%) is a market-cap-weighted index with 503 components — three companies have dual classes of shares, which is why there are 503 components and not 500. Companies with larger market caps, such as Amazon and Alphabet, have more influence (i.e., weighting) within the benchmark index.
The Invesco S&P 500 Equal Weight ETF is an exchange-traded fund (ETF) that assigns equal weight to all S&P 500 components. Instead of a 3% move from Alphabet providing a meaningful bump to the S&P 500 and one of the index’s smaller components moving 10% and hardly having an impact, the Invesco S&P 500 Equal Weight ETF attempts to level the playing field.
During the fourth quarter, billionaire Stanley Druckenmiller purchased 1,173,925 shares of the Invesco S&P 500 Equal Weight ETF, making it his fund’s new fourth-largest holding.
Invesco S&P 500 Equal Weight ETF
Today’s Change
(-1.32%) $-2.58
Current Price
$193.47
Key Data Points
Day’s Range
$193.39 – $195.64
52wk Range
$150.35 – $205.24
Volume
1.7K
Despite adding to Amazon and Alphabet, Duquesne’s chief investor exited Meta Platforms during the fourth quarter, jettisoned Tesla during the first quarter of 2025, and dumped Nvidia in the June-ended quarter of 2024.
His actions suggest that Wall Street’s market leaders are collectively pricey and/or due to underperform the broader market. While double-digit percentage corrections in most members of the Magnificent Seven have brought down their forward price-to-earnings (P/E) ratios, many remain historically pricey.
Apple is still commanding a forward P/E of 27 after delivering three years of virtually stagnant sales from fiscal 2022 through fiscal 2024. Meanwhile, Nvidia is trading at a price-to-sales ratio of more than 20, which is at the higher end of its historic norm since going public.
The sector rotation so far this year has been absolutely stunning…
Video: pic.twitter.com/0tM0Xur5ZW
— Charlie Bilello (@charliebilello) March 3, 2026
It appears that Duquesne’s billionaire boss expects institutional investors (and perhaps even retail investors) to rotate into the other 493 S&P 500 companies when looking for stocks to outperform in 2026.
The Invesco S&P 500 Equal Weight ETF has a relatively low net expense ratio of 0.20% and a superior yield of 1.5%, when compared to the market-cap-weighted S&P 500. More importantly, equal weighting is being given to companies with more attractive valuations. If sector rotation becomes a sustainable theme throughout 2026, this could be another in a long list of successful investments for Stanley Druckenmiller.
Sean Williams has positions in Alphabet, Amazon, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Nvidia, and Tesla and is short shares of Apple. The Motley Fool has a disclosure policy.
