This article is part of a series that provides an ongoing analysis of the changes made to George Soros's 13F stock portfolio on a quarterly basis. It is based on George Soros's regulatory 13F Form filed on 11/14/2022. 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 Q2 2022.
Soros Fund Management invests globally, and the long positions in the US market reported in the 13F filings represent ~25% of the overall portfolio. The 13F portfolio value increased ~4% this quarter from $5.62B to $5.86B. The number of positions decreased from 271 to 270. Very small stock positions and large debt holdings together account for ~44% 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 Rivian Automotive, Biohaven, and Duke Realty. To learn about Soros' distinct trading style and philosophy, check out his "The Alchemy of Finance" and other works.
Select Sector Energy (XLE) Puts, ChemoCentryx Inc., and Sierra Wireless (SWIR): The short position in XLE through Puts was established this quarter as it traded between $67.50 and $84. It currently trades at $92.21. ChemoCentryx was a merger-arbitrage stake. It got acquired by Amgen and the transaction closed in October. SWIR is a small 0.73% merger-arbitrage stake. It is getting acquired by Semtech Corporation (SMTC) in a $31 per share all-cash deal announced in August.
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.
American Campus Communities, GCP Applied Technology, Meritor Inc., Turning Point Therapeutics, and Welbilt Inc.: These were merger-arbitrage stakes. They were eliminated as their respective deals closed.
Biohaven Limited and Duke Realty: The large (top three) Biohaven stake was a merger-arbitrage stake built over the last two quarters. Pfizer (PFE) acquired Biohaven in a $148.50 per share all-cash deal that closed in October. New Biohaven (BHVN) was spun-off simultaneously to shareholders of Biohaven in the ratio 2:1. New Biohaven stock currently trades at $15.41. Duke Realty was a merger-arbitrage stake. Prologis (PLD) acquired Duke Realty in an all-stock deal that closed in October.
Invesco QQQ Trust (QQQ) & Calls: QQQ & Calls is a 2.48% stake primarily built during the last two quarters at prices between ~$267 and ~$369. It is now at ~$289.
Aramark Inc. (ARMK): The ~2% ARMK stake saw a ~200% increase last year at prices between ~$31.50 and ~$42.25. Q1 2022 saw a one-third reduction at prices between ~$33 and ~$38. The stock is now at $40.71. There was a marginal increase this quarter.
Salesforce.com (CRM): The 1.66% of the portfolio CRM stake was built over the last five quarters at prices between ~$144 and ~$310 and the stock currently trades near the low end of that range at ~$152.
FIGS Inc. (FIGS): FIGS had an IPO last June. Shares started trading at ~$30 and currently goes for $6.24. Soros' stake is at 0.57% of the portfolio. There was a ~42% selling in Q4 2021 at prices between ~$23 and ~$43 while next quarter there was a ~60% stake increase at prices between ~$13.50 and ~$27. That was followed with a ~45% increase over the last two quarters at prices between ~$7 and ~$23.
Accenture plc (ACN), DISH Network (DISH) Puts, Freshworks (FRSH), Intuit (INTU), Nike Inc. (NKE), and Sea Limited (SE) Puts: These small (less than ~0.70% of the portfolio each) stakes were increased during the quarter.
Rivian Automotive (RIVN) & Calls: RIVN had an IPO last November. Shares started trading at ~$100 and currently goes for ~$30. Soros established the stake at prices between ~$85 and ~$130. Q1 2022 saw a ~30% stake increase while last quarter saw a similar reduction. It is by far their largest position at 9.19% of the portfolio. There was a ~8% trimming this quarter.
Note: Rivian's last funding round before the IPO was in early 2021 at a valuation of ~$28B. This is compared to current Enterprise Value of ~$16B. Rivian's Enterprise Value is somewhat skewed as they have a huge net cash position of ~$13B and a lot of that would be consumed in Capex in the coming quarters.
Amazon.com (AMZN): AMZN is a 3.82% of the portfolio position, primarily built in H1 2021 at prices between ~$148 and ~$176. H2 2021 had seen a roughly one-third selling at prices between ~$159 and ~$187. There was a ~40% stake increase last quarter at prices between ~$102 and ~$168. The stock currently trades at ~$94. There was marginal trimming this quarter.
D. R. Horton (DHI): The large ~3% 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. The position has wavered. Recent activity follows. There was a roughly one-third selling over the two quarters through Q1 2022 at prices between ~$75 and ~$110. The stock currently trades at $84.50. This quarter also saw a ~12% trimming.
Bowlero Corp (BOWL) & wts: BOWL is a 1.85% of the portfolio position purchased in Q4 2021 at prices between ~$8.80 and ~$10.15 and the stock currently trades at $12.85. There was a ~9% trimming this quarter.
Note: Soros has a ~5% ownership stake in the business.
Liberty Broadband (LBRDK): LBRDK is the third-largest individual stock position at 3.60% of the portfolio. The stake was established in Q2 2016 at prices between $55 and $60.50. Q4 2019 saw a ~20% selling at prices between $103 and $125. Q1 2021 saw a similar reduction at prices between ~$142 and ~$157. Last four quarters saw a roughly two-thirds reduction at prices between ~$74 and ~$191. The stock currently trades at ~$90.
Alphabet Inc. (GOOG): GOOG is a 1.66% of the portfolio position purchased in Q2 2019 at prices between ~$52 and ~$64 and reduced by ~50% in Q1 2020 at prices between ~$53 and ~$76. Q4 2020 saw another similar selling at prices between ~$71 and ~$86. There was a ~250% stake increase next quarter at prices between ~$86 and ~$107. H2 2021 had seen a ~50% reduction at prices between ~$133 and ~$151. Next quarter saw a one-third increase at prices between ~$127 and ~$148. The stock is now at ~$99. The last two quarters have seen only minor adjustments.
Note: Alphabet is a frequently traded stock in Soros' portfolio.
indie Semiconductor (INDI): The ~1% INDI stake was built over the last three quarters at prices between ~$5.35 and ~$16 and the stock currently trades at $8.20. There was a minor ~4% trimming this quarter.
Note: They have a ~7.7% ownership stake in indie Semiconductor.
LPL Financial (LPLA): The bulk of the original stake in LPLA was purchased in Q2 2018 at prices between $57 and $71. Q3 2020 saw a one-third selling at prices between ~$74 and ~$85. The three quarters through Q2 2021 had seen another ~35% selling at prices between ~$76 and ~$156. The stock currently trades at ~$226 and the stake is now very small at 0.69% of the portfolio. There was a minor ~5% trimming this quarter.
SPDR S&P 500 ETF (SPY) Puts: The 0.61% of the portfolio short position through SPY Puts was established over the two quarters through Q1 2022 as the underlying traded between ~$416 and ~$478. The position was sold down by ~70% over the last two quarters, as the underlying traded between ~$357 and ~$457. SPY is now at ~$402.
Alleghany Corp: Alleghany was a merger-arbitrage stake. Berkshire Hathaway (BRK.B) acquired Alleghany in $848.02 per share all-cash deal that closed in October. The deal was announced in March.
SPDR S&P 500 (SPY) Calls: The ~1.83% of the portfolio long position through SPY Calls was established in Q4 2021 as the underlying traded between ~$429 and ~$478. There was a ~50% stake increase last quarter as SPY traded between ~$366 and ~$457. It is now at ~$402.
The spreadsheet below highlights Soros's significantly large 13F positions as of Q3 2022:
This article was written by
Disclosure: I/we have a beneficial long position in the shares of AMZN, GOOGL, INDI, LCID, RIVN either through stock ownership, options, or other derivatives. 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.