A Look at George Soros' Top 10 Holdings

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 |  Includes: AGRO, DHR, DNDN, EM, IOC, LWSN, MSI, RL, TMO, VC
by: The Analyst Hub

Soros Fund Management LLC is one of the most successful and high-profile hedge funds managed by billionaire hedge fund manager George Soros. Soros returned an average of 30.5% per year between 1969 and 2000. More recently in 2007, 2008, and 2009, his fund generated 32%, 8% and 29% return respectively for the investors.

The following is a list of top 10 holdings of Soros Fund Management LLC.

Stock

Symbol

Shares Held - 06/30/2011

% of Portfolio

Change in shares

Adecoagro S.A.

AGRO

26,446,938

7.95

-711,755

Motorola Solutions, Inc.

MSI

5,662,139

7.02

1,181,529

Interoil Corporation

IOC

3,969,622

6.25

-77,700

Polo Ralph Lauren Corp.

RL

994,612

3.55

498,244

Visteon Corp.

VC

1,590,545

2.93

-543,561

Dendreon Corp.

DNDN

2,586,366

2.75

-2,085,333

Emdeon Inc

EM

6,913,718

2.44

-238,300

Lawson Software, Inc.

LWSN

7,666,666

2.32

1,405,909

Danaher Corp.

DHR

1,581,486

2.26

-290,284

Thermo Fisher Scientific, Inc.

TMO

937,100

1.62

482,100

Click to enlarge

Source: 13F filing

My favourite among above stocks is Polo Ralph Lauren Corp. The company engages in the design, licensing, marketing, and distribution of lifestyle products. It offers the products in four categories: apparel, home, accessories, and fragrance.

I believe Polo Ralph Lauren has a good potential to increase its margins as input costs (in particular cotton prices) decline, positive pricing actions take a hold and the company benefits from expanding scale. The company saw some of the benefits from these factors last quarter and reported gross margins of 63% vs. 60% consensus estimates. In addition to the margins, RL has a good potential to achieve strong revenue growth over the next several years driven by category, channel and geographical expansion. Although there are macro risk as global luxury consumer spending could be impacted by recent financial market volatility; Ralph Lauren hasn’t seen any impact yet. Even investors are upbeat about the stock and the stock has outperformed S&P500 in last one (1800 bps outperformance), three (2500 bps outperformance) and six (3400 bps outperformance) months.

For other stocks in the above list, here are some of the specifics about these companies, including a brief description of their business, growth expectations (topline and bottomline):

Adecoagro S.A. is an agricultural company in South America, with operations in Argentina, Brazil and Uruguay. It is engaged in a range of businesses, including farming crops and other agricultural products, cattle and dairy operations, sugar, ethanol and energy production and land transformation. As of September 30, 2010, it owned a total of 287,884 hectares, consisted of 21 farms in Argentina, 15 farms in Brazil and two farms in Uruguay. Adecoagro's EPS forecast for the current year is $0.27 and next year is $0.33. According to consensus estimates, its top line is expected to grow 17.80% next year.

Motorola Solutions, Inc. provides mission-critical communication products and services for enterprise and government customers worldwide. The Company’s portfolio includes products, such as two-way radios, barcode scanners, radio frequency identification readers, mobile computing devices, wireless broadband networks and wireless local area network products. Motorola Solutions' EPS forecast for the current year is $2.49 and next year is $2.79. According to consensus estimates, its top line is expected to grow 4.70% next year.

InterOil Corporation is an integrated energy company operating in Papua New Guinea and its surrounding Southwest Pacific region. The Company operates in four business segments: upstream, midstream, downstream and corporate. InterOil's EPS forecast for the current year is $0.72 and next year is $0.59. According to consensus estimates, its top line is expected to grow 68.40% in the current year and 8.70% next year.

Visteon Corporation is a supplier of climate, interiors and electronics systems, modules and components to automotive original equipment manufacturers worldwide. The Company supplies a range of integrated systems, modules and components to vehicle manufacturers for use in the manufacture of new vehicles. The Company’s operations are organized in global product groups, including Climate, Electronics and Interiors. Visteon's EPS forecast for the current year is $3.96 and next year is $5.35. According to consensus estimates, its top line is expected to grow 8.90% in the current year and 9.80% next year.

Dendreon Corporation is a biotechnology company focused on the discovery, development and commercialization of therapeutics that may improve cancer treatment options for patients. The Company’s product portfolio includes active cellular immunotherapy and small molecule product candidates to treat a range of cancers. Dendreon's EPS forecast for the current year is -$2.60 and next year is -$1.25. According to consensus estimates, its top line is expected to grow 343.80% in the current year and 76.50% next year.

Emdeon Inc. is a leading provider of revenue and payment cycle management and clinical information exchange solutions, connecting payers, providers and patients in the U.S. healthcare system. Emdeon's product and service offerings integrate and automate key business and administrative functions of its payer and provider customers throughout the patient encounter. On August 4, 2011, the company announced that it has entered into a definitive merger agreement with Blackstone Capital Partners VI L.P. under which this Blackstone fund will acquire a controlling interest in Emdeon in a transaction valued at approximately $3 billion that will result in Emdeon becoming a private company.

Lawson Software Inc. provides business application software, services and support to specific markets including healthcare, retail, financial services (banking, insurance and other financial services), education, local/state governments and professional services. Its software includes financials, human resources, procurement, healthcare supply chain, distribution, retail operations, service process optimization, and enterprise performance management applications designed to help manage, analyze and improve clients’ businesses. Lawson Software was acquired by Infor Global Solutions and Golden Gate Capital in June 2011.

Danaher Corporation designs, manufactures and markets professional, medical, industrial and commercial products and services. The Company operates in five segments: Test & Measurement; Environmental; Life Sciences & Diagnostics; Dental, and Industrial Technologies. Danaher's EPS forecast for the current year is $2.82 and next year is $3.27. According to consensus estimates, its top line is expected to grow 24.30% in the current year and 16.90% next year.

Thermo Fisher Scientific Inc. is engaged in serving science. It provides analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics. It operates through two segments: analytical technologies and laboratory products and services. Thermo Fisher's EPS forecast for the current year is $4.21 and next year is $4.92. According to consensus estimates, its top line is expected to grow 9.90% in the current year and 9.20% next year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.