Stanley Druckenmiller made a big bet on this country, and it's already paid off

By Steve Goldstein

Stanley Druckenmiller bet big on Brazil.

Famed investor Stanley Druckenmiller, who mentored both Treasury Secretary Scott Bessent and Fed Chair nominee Kevin Warsh, looks to have already made a handsome profit with a well-time bet on Brazil.

The 13-F filing released on Tuesday, covering the fourth quarter, found that the Duquesne Family Office he runs for himself bought the iShares MSCI Brazil EWZ, both directly and via a call option.

If he held onto that position, it's already paid off: the fund has surged 19% in just one-and-half months of 2026, after gaining 49% last year.

Emerging markets have broadly benefited from a weak U.S. dollar, and the Brazil index features oil producer Petrobras (PBR) and miner Vale (VALE) that have benefited from investor demand for commodity producers. The growing fintech Nu Holdings (NU) is the number-two component of that index.

Few 13-F filings show holdings of the iShares MSCI Brazil, though big investors could have exposure to Brazil through direct investments in the Latin American country. The Securities and Exchange Commission doesn't require the disclosure of foreign equities.

Druckenmiller's other big buys in the fourth quarter also are looking smart - the Invesco S&P 500 Equal Weight ETF RSP, which has benefited from the rotation outside of tech, as well as the State Street Financial Select Sector SPDR ETF XLF, both of which have outperformed the flat S&P 500 SPX.

-Steve Goldstein

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02-18-26 0412ET