A Look at George Soros' Long-Term Holdings

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 |  Includes: IBM, RL, SMH, T, VMW, VZ
by: Insider Monkey

George Soros is an 80-year-old Hungarian-American hedge fund manager who became known as "the Man Who Broke the Bank of England" after he made $1 billion in 1992. Soros graduated from the London School of Economics in 1952. After graduation, he started his career in the London merchant bank of Singer & Friedlander. In 1956 he moved to New York City and his career took off. He earned large profits from investments and currency speculation. According to Forbes, he is ranked 46th on the list of the world’s richest people, with an estimated net worth of $14.5 billion.

Soros returned an average of 30.5% per year between 1969 and 2000. In 2007, Soros came back from retirement after the quant liquidity crunch and managed to generate a 32% return for the year. Soros even managed to return 8% in 2008, the worst year for most hedge funds. Soros also returned 29% in 2009, earning $3.3 billion in fees and investment gains.

According to 13F filings, Soros Fund Management had 596 securities with a total value of $7.1 billion in its 13F portfolio as of June 30, 2011. During the second quarter, Soros placed new bets on International Business Machines Corp. (NYSE:IBM), Semiconductor HOLDRs (NYSEARCA:SMH) and VMWARE Inc (NYSE:VMW). We pay special attention to Soros’ new stock picks as well as his long-term holdings. Soros had 30 large positions in his portfolio that he also had large positions a year ago. These are the stocks in which Soros has conviction.

Stock

Value

Return

(Millions)

(52 Weeks)

INTEROIL CORP (NYSE:IOC)

232.3

-4.20%

POLO RALPH LAUREN (NYSE:RL)

145.2

54.24%

WESTPORT INNOVATIONS (NASDAQ:WPRT)

120.6

27.73%

EMDEON INC (NYSE:EM)

90.7

66.36%

DANAHER CORP DEL (NYSE:DHR)

83.8

13.28%

APPLE INC (NASDAQ:AAPL)

70.5

46.49%

THERMO FISHER (NYSE:TMO)

60.3

15.15%

TIME WARNER CABLE (TWC)

58.0

18.52%

AT&T INC (NYSE:T)

53.7

11.70%

DIRECTV (DTV)

52.5

12.25%

VERIZON (NYSE:VZ)

47.4

24.89%

DAVITA INC (NYSE:DVA)

43.7

10.87%

COMCAST CORP NEW (NASDAQ:CMCSA)

42.3

15.82%

EXAR CORP (NYSE:EXAR)

42.2

-2.77%

RF MICRODEVICES INC (RFMD)

40.8

13.67%

MERCURY COMPUTER SYS (NASDAQ:MRCY)

38.1

29.68%

STANLEY BLACK & DECKER (NYSE:SWK)

37.1

5.23%

WESTERN DIGITAL CORP (NASDAQ:WDC)

36.2

15.81%

DANAHER CORP Calls (DHR)

31.8

13.28%

QUALCOMM INC (NASDAQ:QCOM)

31.3

27.87%

LIBERTY MEDIA (LINTA)

30.5

31.30%

HARVEST NATURAL RES (NYSE:HNR)

30.1

33.67%

EXTREME NETWORKS INC (NASDAQ:EXTR)

28.7

2.26%

TARGET CORP (NYSE:TGT)

25.9

-0.33%

GILEAD SCIENCES INC (NASDAQ:GILD)

25.0

12.56%

CVS CAREMARK (NYSE:CVS)

19.1

17.09%

COINSTAR INC (CSTR)

17.8

-15.44%

MACYS INC (NYSE:M)

17.6

12.48%

ALPHA NATURAL RES (ANR)

15.9

-28.10%

GREAT BASIN GOLD LTD (NYSEMKT:GBG)

14.0

-10.10%

Average Performance

1,583.1

15.71%

SPY

8.27%

Click to enlarge

Soros’ largest long-term pick is Interoil, which he now has around $232 Million in. InterOil Corporation primarily engages in the exploration, appraisal and development of crude oil and natural gas properties in Papua New Guinea. IOC recently traded at $60.97. IOC lost 4.2% during the past 52 weeks. Robert Pitts’ Steadfast Capital, Charles Clough’s Clough Capital and Peter Adam Hochfelder’s Brahman Capital are also bullish about IOC (see Charles Clough’s top holdings here).

Soros’ second largest long-term bet is Polo Ralph Lauren (RL) which has been a very profitable bet. Soros had two classes of RL in his portfolio, totaling more than $145 Million. The stock returned 54% since August 2010, beating S&P 500 (SPY) index by a large margin. Stephen Mandel also had a large position in RL (see the complete list of hedge funds with RL holdings).

Soros has been holding two largest U.S. telecom stocks, Verizon (VZ) and AT&T (T), in his portfolio. Both of these stocks have high dividend yields and also outperformed the market during the past 12 months. Verizon performed better than T, returning almost 25%. Jim Simons’ Renaissance had $94 Million in T and $114 in VZ at the end of June (see Jim Simons’ top stock picks).

If Soros had invested equal amounts in each name, his return would have been 15.7%, beating the SPY by 7.4 percentage points. This underlines Soros’ talent in picking long term winners (you can check out Soros’ current top holdings here).

Disclosure: I am long T.