Tracking George Soros' Portfolio - Q4 2020 Update
Summary
- Soros' 13F portfolio value increased from $4.08B to $5.30B this quarter. The number of positions increased from 132 to 146.
- Soros added Clarivate plc and Elanco Animal Health while dropping DraftKings and E-TRADE Financial.
- Liberty Broadband at ~16% of the portfolio is by far the largest position.
This article is part of a series that provides an ongoing analysis of the changes made to George Soros’ 13F stock portfolio on a quarterly basis. It is based on George Soros’ regulatory 13F Form filed on 2/16/2021. Please visit our Tracking Soros Fund Management Holdings article for an idea on his investment philosophy and our previous update for the fund’s moves during Q3 2020.
Soros Fund Management invests globally and the long positions in the US market reported in the 13F filings represent ~20% of the overall portfolio. The 13F portfolio value increased ~30% this quarter from $4.08B to $5.30B. The number of positions increased from 132 to 146. Very small stock positions and large debt holdings together account for ~25% of the 13F holdings. The investments are diversified with a large number of very small equity positions, a small number of large equity positions, and a few large debt holdings. The focus of this article is on the larger equity positions. The top three individual stocks held are Liberty Broadband, Palantir Technologies, and QuantumScape. To learn about Soros’ distinct trading style and philosophy, check out his “The Alchemy of Finance” and other works.
New stakes:
QuantumScape (QS), Clarivate plc (CLVT), and Elanco Animal Health (ELAN): These three stakes were purchased this quarter. QS is a large (top five) 5.29% of the portfolio stake established as the shares traded between ~$12 and ~$132 and the stock currently trades at $57.69. The 1.18% CLVT position was purchased at prices between $26.50 and $33.50 and it is now below that range at $23.53. ELAN is a 0.87% of the portfolio stake established at prices between $27.50 and $33.80 and it currently goes for $33.65.
iShares MSCI Emerging Markets ETF (EEM) & Calls and SPDR Energy ETF (XLE) & Calls: EEM is a large 4.40% of the portfolio position established this quarter at prices between ~$44 and ~$52 and it currently trades at $55.17. The 1.54% XLE stake was purchased at prices between $27.70 and $41.60 and it is now at $49.40.
Note: Soros is known to use ETFs to hedge other parts of his portfolio. As such, such positions do not indicate a clear market bias.
Stake Disposals:
Immunomedics (IMMU), Microchip Technology (MCHP), and Unity Software (U): These small (less than ~1% of the portfolio each) positions were established last quarter. Gilead (GILD) acquired Immunomedics for $88 per share cash in a deal that closed last October. Unity Software had an IPO in September. Shares started trading at ~$90 and currently goes for ~$109. The stake was disposed this quarter at prices between ~$83 and ~$172. MCHP was a 0.67% of the portfolio stake established last quarter and eliminated this quarter.
SPDR Industrials (XLI), and SPDR S&P 500 ETF (SPY) Puts: The small 0.78% XLI position was purchased last quarter at prices between $67 and $80 and disposed this quarter at prices between ~$75 and ~$90. It is now at $92.93. SPY is a 1.23% of the portfolio short stake through Puts purchased as the underlying traded between ~$310 and ~$358. It is now at ~$390. The disposal this quarter happened when the underlying traded between ~$327 and ~$374.
DraftKings Inc. (DKNG): DKNG was a large 3.40% position established in Q2 2020 at prices between $11.75 and $43.70. This quarter saw the stake sold at prices between $35.40 and $63.80. The stock is now at $68.72.
Note: DKNG was a favorite among Robinhood traders in Q2 2020 and it is likely that Soros took advantage of the resultant up-trend.
Peloton Interactive (PTON): PTON had an IPO in October 2019. Shares started trading at ~$25 and currently goes for ~$124. Q4 2019 saw a ~80% selling at prices between $21 and $37 while next quarter there was a ~10x stake increase to a top-five ~4% portfolio stake at prices between ~$20 and ~$35. Q2 2020 saw selling: ~85% reduction to a small 0.66% portfolio stake at prices between $26.50 and $60. Last quarter saw the remainder stake almost eliminated at prices between ~$58 and ~$101. The resultant minute position was disposed this quarter.
TD Ameritrade (AMTD) and E-TRADE Financial (ETFC): These two were very small merger-arbitrage stakes that got eliminated as their respective transactions closed.
Stake Increases:
D.R. Horton (DHI): The 4.82% DHI stake was established in Q1 2019 at prices between $35 and $47 and increased by ~70% next quarter at prices between $42 and $47. Q3 2019 saw a ~18% selling at prices between $43.50 and $53 while next quarter there was a ~75% stake increase at prices between $29 and $62. Q2 2020 saw a ~25% selling at prices between $32 and $59. There was a ~70% stake increase last quarter at prices between ~$54 and ~$78. That was followed with a ~20% increase this quarter. The stock currently trades at $77.64.
Activision Blizzard (ATVI): ATVI is a 2.28% of the portfolio stake established in Q4 2019 at prices between $52 and $59 and increased by ~45% next quarter at prices between $52 and $64. The stock currently trades well above those ranges at $98.72. There was a ~18% stake increase this quarter at prices between ~$75 and ~$93.
SPDR Utils (XLU) Calls: XLU Calls were established in Q1 2020 as the underlying traded between $45 and $71. The position was increased by ~340% next quarter as it traded between $52 and $63. Last quarter saw the large 4.41% of the portfolio stake reduced by ~85% as XLU traded between ~$56 and ~$62. This quarter saw a 140% stake increase as XLU traded between ~$60 and ~$67. It is now at $59.65 and the stake is at 1.42% of the portfolio.
NortonLifeLock (NLOK) previously Symantec: NLOK is a 1.33% portfolio stake established in Q2 2019 at prices between $18 and $24.50. Q4 2019 saw a ~70% stake increase at prices between $22.50 and $26.50. There was a ~18% selling in Q1 2020 at prices between $16.50 and $28.50. Next quarter saw a ~80% stake increase at prices between $18 and $23 while last quarter there was a ~50% selling at prices between $20 and $24. There was a ~45% stake increase this quarter at prices between ~$18 and ~$22. The stock currently trades at $19.66.
Note: A $12 per share special dividend was distributed in January – their enterprise security business was sold to Broadcom (AVGO) and the company had promised to return the entire after-tax proceeds to shareholders.
Alphabet Inc. (GOOG) (GOOGL): GOOG is a small 0.65% of the portfolio position purchased in Q2 2019 at prices between $1036 and $1288 and reduced by ~50% in Q1 2020 at prices between $1057 and $1527. Last quarter saw another similar selling at prices between $1415 and $1728. The stock is now at ~$2082. This quarter saw a ~11% increase.
Note: Alphabet is a frequently traded stock in Soros’ portfolio.
PennyMac Financial (PFSI) and Walt Disney (DIS): These two small (less than ~1% of the portfolio each) stakes saw increases this quarter.
Stake Decreases:
Hain Celestial Group (HAIN): The 1.59% HAIN position was purchased in Q2 2020 at prices between $25 and $32 and the stock currently trades above that range at $42.32. This quarter saw a ~50% selling at prices between $30.75 and $40.50.
VICI Properties (VICI): In October 2017, Caesars Entertainment combined with Caesars Acquisition in a merger (bankruptcy court reorg). The bankruptcy reorg included the spinoff of VICI Properties whereby the creditors received VICI shares. The 3.14% of the portfolio position in VICI came about as a result of this transaction – Soros had huge stakes (both equity and debt) in the parent businesses. The stock started trading at $18 per share and currently goes for $28.87. Q2 2019 saw a ~5% stake increase while last quarter saw a ~10% reduction. There was a ~62% selling in Q4 2019 at prices between $22.50 and $25.50 and that was followed with a ~30% further reduction next quarter at prices between $11.20 and $28.15. Q2 2020 saw a ~25% stake increase at prices between $13.75 and $23 while this quarter there was a 45% reduction at prices between $22.50 and $26.60.
T-Mobile US (TMUS): The 1.59% TMUS position was primarily built in Q2 2020 at prices between $82 and $110 and it is now at ~$124. There was a ~60% selling last quarter at prices between ~$104 and ~$119. That was followed with a ~6% trimming this quarter.
Darden Restaurants (DRI): DRI is a 1.14% portfolio stake established in Q2 2020 at prices between $44 and $86 and it currently goes for ~$139. Last quarter saw a ~15% stake increase at prices between ~$71 and ~$105 while this quarter there was a ~50% selling at prices between ~$90 and ~$121.
Otis Worldwide (OTIS): The ~1% OTIS sake was purchased in Q2 2020 at prices between $44 and $61 and it is now at $64.93. Last quarter saw a one-third selling at prices between ~$56 and ~$65. This quarter also saw a ~7% trimming.
Alcon Inc. (ALC): The 0.85% ALC position was purchased in Q3 2019 at prices between $56 and $62.50. There was a ~20% selling in Q4 2019 at prices between $55 and $59 while next quarter saw a roughly two-thirds increase at prices between $40 and $64. It is now at $70.44. This quarter saw minor trimming.
LPL Financial (LPLA): The bulk of the 0.52% of the portfolio stake in LPLA was purchased in Q2 2018 at prices between $57 and $71 and the stock currently trades at ~$135. There had only been minor adjustments since. Last quarter saw a one-third selling at prices between ~$74 and ~$85. That was followed with a ~18% reduction this quarter.
AGNC Investment Corp. (AGNC), Aramark Inc. (ARMK), Sea Ltd. (SE), and Varian Medical Systems (VAR): These small stakes were reduced this quarter. Varian Medical is a merger arbitrage stake. It is getting acquired by Siemens Healthineers AG (OTC:SEMHF) for $177.50 per share cash.
Kept Steady:
Liberty Broadband (LBRDK): LBRDK is the largest individual stock position by far at ~16% of the portfolio. The stake was established in Q2 2016 at prices between $55 and $60.50. The stock has doubled and is currently trading at ~$152. Q4 2019 saw a ~20% reduction at prices between $103 and $125. That was followed with a ~7% trimming in Q1 2020.
Palantir Technologies (PLTR): PLTR had a direct listing last September. Trading started at ~$10 and it currently goes for $24.81. The stake is Soros’ 2nd largest individual stock position at 8.21% of the portfolio. Soros’ position goes back to a private equity investment made in 2012.
Invesco QQQ Trust (QQQ): QQQ is a large 6.68% of the portfolio stake established last quarter at prices between $250 and $303 and it currently trades at ~$324.
Note: Soros is known to use ETFs to hedge other parts of his portfolio. As such, such positions do not indicate a clear market bias.
iShares Trust iBoxx ETF (LQD): The 4.42% LQD stake was purchased in Q1 2020 at prices between $105 and $134 and increased by ~600% next quarter at prices between $121 and $135. The stock currently trades at ~$132. Last quarter saw marginal trimming.
SelectQuote (SLQT): SelectQuote had an IPO last May. The stock started trading at ~$27.50 and currently goes for $32.22. Soros’ stake is at 2.18% of the portfolio.
iShares Barclays 1-5yr Bond Fund (IGSB): IGSB is now a 1.16% of the portfolio stake. It was purchased in Q2 2020 at prices between $52 and $55. Last quarter saw the stake sold down by ~60% at ~$55. IGSB currently trades at $54.82.
iShares National Muni ETF (MUB) and SPDR Portfolio Short-Term Corporate Bond ETF (SPSB): These small stakes were kept steady this quarter.
The spreadsheet below highlights Soros’ significantly large 13F positions as of Q4 2020:
Source: the author. Data from Soros Fund Management
This article was written by
Analyst’s Disclosure: I am/we are long GILD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Comments (32)
And you want me to take notice?
Well I'm taking notice. I'll pass and buy the qqq's just like he did!!!
What a waste...
Soros made a single bet against the boe and he has been milking it ever since...
John.
"they"?