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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.

Here are some of the gems from top buys of Soros Fund Management LLC which have outperformed the broader markets significantly since June 30.

Stock

Symbol

Shares Held - 03/31/2011

Shares Held - 06/30/2011

% change in stock price (June 30- Sept. 23)

Polo Ralph Lauren Corp.

RL

496,368

994,612

11.83%

Target Corp.

TGT

8,700

552,600

5.70%

RF Micro Devices Inc.

RFMD

4,366,666

6,666,666

16.44%

Credicorp Ltd.

BAP

47,600

155,960

3.75%

Pharmasset, Inc.

VRUS

0

81,700

38.35%

Biomarin Pharmaceutical Inc.

BMRN

19,900

191,510

15.22%

Source: 13F filing

My favorite 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.

Ralph Lauren's EPS forecast for the current year is $6.77 and next year is $7.78. According to consensus estimates, its top line is expected to grow 18.60% in the current year and 10.20% next year.

I believe Polo Ralph Lauren has 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 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 the S&P 500 in the 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):

Target Corporation operates Target general merchandise stores with an assortment of general merchandise and food assortment. Its expanded food assortment includes some perishables and some additional dry, dairy and frozen items.

In addition, it operates Super Target stores with general merchandise items and a full line of food items. Target's EPS forecast for the current year is $4.22 and next year is $4.34. According to consensus estimates, its top line is expected to grow 3.80% in the current year and 4.10% next year.

RF Micro Devices, Inc. is engaged in the design and manufacture of radio frequency components and compound semiconductor technologies. RFMD manufacturers gallium arsenide based and gallium nitride compound semiconductors for RF applications. The company’s products enable worldwide mobility; provide connectivity and support advanced functionality in the cellular handset, wireless infrastructure, wireless local area network, cable television/broadband, Smart Energy/advanced metering infrastructure, and aerospace and defense markets.

RF Micro Devices’ EPS forecast for the current year is $0.39 and next year is $0.58. According to consensus estimates, its top line is expected to decline by 12.00% in the current year and grow 15.40% next year.

Credicorp Ltd. is a financial services holding company. Credicorp is engaged principally in banking, insurance, pension funds, and brokerage and other. The company operates in four segments: banking, insurance, pension funds, and brokerage.

Credicorp's EPS forecast for the current year is $8.42 and next year is $9.67. According to consensus estimates, its top line is expected to grow 19.70% in the current year and 12.90% next year.

Pharmasset, Inc. is a clinical-stage pharmaceutical company focused on discovering, developing, and commercializing novel drugs to treat viral infections. The company focuses on the development of nucleoside/tide analogs as oral therapeutics for the treatment of chronic hepatitis C virus infection.

Pharmasset's EPS forecast for the current year is -$1.27 and next year is -$1.55. According to consensus estimates, its top line is expected to grow 169.60% in the current year and 21.80% next year.

BioMarin Pharmaceutical Inc. develops and commercializes pharmaceuticals for serious diseases and medical conditions. The company’s product portfolio consists of four approved products and multiple investigatory product candidates.

BioMarin's EPS forecast for the current year is -$0.29 and next year is $0.00. According to consensus estimates, its top line is expected to grow 21.80% in the current year and 14.50% next year.

Source: A Look At George Soros's 6 Best Performing Buys