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George Soros founded Soros Fund Management in 1969. In 1992, Soros became known as the “Man Who Broke the Bank of England” when he bet big against Bank of England and made $1 billion. Today, Soros makes billions every year and his Soros Fund Management was reported to be one of the most profitable firms in the hedge fund industry. Soros recently announced returning capital back to investors, so these are our last chances to take a look at where Soros is putting his enormous wealth.

Below we compiled a list of George Soros stocks that are relatively defensive because they have Total Debt / Equity ratio of below 0.8 and beta of lower than 1.0. All companies have at least a $10 billion market cap and Soros invested at least $4 million in these U.S. stocks. The market data is sourced from Finviz.

Company Name

Ticker

Value

D/E

Beta

BIOGEN IDEC INC

BIIB

18724

0.17

0.86

PFIZER INC

PFE

11787

0.46

0.72

KRAFT FOODS INC

KFT

11102

0.79

0.55

A T & T INC

T

10800

0.63

0.6

C V S CAREMARK

CVS

7781

0.29

0.8

BAXTER INTL

BAX

6609

0.65

0.47

QUALCOMM INC

QCOM

4921

0.04

0.94

GILEAD SCIENCES

GILD

4904

0.64

0.42

MONSANTO CO

MON

4839

0.19

0.94

GOODRICH CORP

GR

4707

0.63

0.95

The biggest position of Soros Fund Management among the stocks listed above is Biogen, a global biotechnology company. As of September 30, Soros Fund Management disclosed to own $19 million of BIIB. BIIB is also a new position in the fund. It has a very low debt to equity ratio of 0.17 and a beta of 0.86. The stock returned 18.40% since the end of the third quarter, beating the 8.14% for SPY in the same period. Andreas Halvorsen’s Viking Global had more than $200 million invested in BIIB.

Soros Fund Management is also bullish about Pfizer Inc. In the third quarter, Soros Fund Management boosted its stakes in PFE by 17% to $12 million. PFE has a debt to equity ratio of 0.46 and a beta of 0.72. PFE gained 20.17% since the end of September, outperforming the market by more than 12 percentage points. Ken Fisher’s Fisher Asset Management had nearly $400 million invested in PFE.

During the third quarter, Soros significantly increased his position in Kraft Foods Inc (KFT). At the end of September, Soros Fund Management reported to own $11 million of KFT shares. KFT has a debt to equity ratio of 0.79 and a beta of 0.55. It returned 8.67% since the end of September, versus 8.14% for SPY. Warren Buffett is bullish about KFT as well. His Berkshire Hathaway had more than $3.0 billion worth of KFT shares.

Other defensive stocks Soros Fund Management is in favor of include AT&T Inc (NYSE:T), CVS Caremark Corp (NYSE:CVS), Baxter International Inc (NYSE:BAX), Qualcomm Inc (NASDAQ:QCOM), Gilead Sciences Inc (NASDAQ:GILD), Monsanto Co (NYSE:MON) and Goodrich Corp (NYSE:GR). Defensive stocks are generally considered good investments, especially when the markets are in turmoil. We are still concerned about the European debt crisis and we have been encouraging investors to play defensively. We believe that one of the best ways to pick defensive stocks is to focus on the defensive stock picks of successful hedge fund managers like George Soros.

Disclosure: I am long T.

Source: George Soros' Hedge Fund Bullish On These Defensive Stock Picks