George Soros owns these seven stocks in 2022.
Regardless of what you think of George Soros’ politics, it’s undeniable that he’s one of the most successful investors in history. His Soros Fund Management currently manages $8.4 billion in assets, and Soros himself has an estimated net worth of $8.6 billion after donating more than $30 billion to philanthropic causes. Soros formerly managed the Quantum Fund, which generated an average annual return of 30% over a 30-year period from 1970 to 2000. Soros also famously made a $1 billion profit in a single day in 1992 by short selling the British pound. Here are seven of the Soros Fund’s top stock holdings, according to its latest 13F filings.
7. Alphabet Inc. (ticker: GOOG, GOOGL)
Google and YouTube parent company Alphabet may not be the high-growth stock it once was, but it is extremely profitable and reasonably valued at a forward earnings multiple of just 20.7. Soros first invested in Alphabet back in the first quarter of 2017. Since that time, the stock has roughly tripled in value and more than doubled the return of the S&P 500. Soros took advantage of Alphabet’s weakness in the second quarter and scooped up another 100,180 shares of GOOGL stock. The Soros Fund now holds 1.06 million Alphabet shares worth about $115.8 million.
Portfolio weight: 2%
6. Alleghany Corp. (Y)
Alleghany operates several insurance and reinsurance businesses, and is a unique holding in Soros’ portfolio. In March 2022, billionaire Wall Street legend Warren Buffett’s Berkshire Hathaway Inc. (BRK.A, BRK.B) announced an $11.6 billion buyout of Alleghany priced at $848.02 per share. During the second quarter, the Soros Fund also bought 201,961 shares of Alleghany, a stake currently worth more than $168.2 million. Soros’ investment in Alleghany appears to be a simple merger arbitrage bet given Y stock currently trades at around $841, roughly a 0.9% discount to Berkshire’s buyout price.
Portfolio weight: 3%
5. Biohaven Pharmaceutical Holding Co. Ltd. (BHVN)
Biohaven Pharmaceutical is a biopharmaceutical company that specializes in the treatment and prevention of migraines via its Nurtec orally disintegrating tablet. In May, global pharmaceutical giant Pfizer Inc. (PFE) announced an $11.6 billion buyout of Biohaven that sent the stock 68% higher on the day the news was announced. Like it did with Alleghany, the Soros Fund seemingly scooped up more than 1.25 million shares of Biohaven stock in the second quarter after the deal was announced as a merger arbitrage trade. BHVN stock currently trades at only about a 0.4% discount to its $148.50 proposed buyout price.
Portfolio weight: 3.2%
4. D.R. Horton Inc. (DHI)
D.R. Horton is one of the largest U.S. homebuilders. The U.S. housing market boomed after the emergency Federal Reserve interest rate cuts in early 2020. Soros first invested in D.R. Horton back before the pandemic, buying shares in the first quarter of 2019. Unfortunately, the U.S. housing market has been pressured in 2022 as the Fed combats inflation and mortgage rates rise. Soros cut his D.R. Horton position in the second quarter, selling 37,097 shares and bringing his total stake down to 2.97 million shares worth about $197 million.
Portfolio weight: 3.5%
3. Liberty Broadband Corp. (LBRDK)
Liberty Broadband is a cable, broadband and mobile technology company and the parent of Charter Communications Inc. (CHTR). In the most recent quarter, Soros cut his stake in Liberty Broadband by 919,207 shares, reducing his holdings by about 34%. Even after the sale, Liberty Broadband remains Soros Fund Management’s third-largest stock holding. The fund owns nearly 1.5 million shares worth about $202.3 million. Liberty’s stock lagged the S&P 500 in 2021, but it’s been a strong long-term investment. In fact, it’s up roughly 100% since Soros first bought shares back in the second quarter of 2016.
Portfolio weight: 3.6%
2. Amazon.com Inc. (AMZN)
Over the past 12 months, e-commerce and cloud services giant Amazon hasn’t delivered the type of returns long-term investors have come to expect. In fact, Amazon’s stock price is down about 12% since the beginning of 2021 as the company has dealt with slowing growth. Soros has only held Amazon shares since the fourth quarter of 2020. In the most recent quarter, Soros Fund Management bought 590,160 shares of AMZN stock, boosting its stake by about 41%. As of the end of the quarter, Soros still held more than 2 million shares of Amazon worth about $212.8 million.
Portfolio weight: 3.7%
1. Rivian Automotive Inc. (RIVN)
Rivian Automotive is an electric vehicle startup that went public in November 2021 and began delivering its first R1T electric pickup trucks in December. Soros immediately took a big stake in Rivian, buying 19.8 million shares and making it his largest holding during Rivian’s first quarter on the public market. Even after selling more than 2 million shares in the second quarter, Soros’ Rivian stake is worth roughly $459 million, more than twice the value of any other public holding in his portfolio. Unfortunately, Rivian shares are now trading more than 50% below their $78 initial public offering price.
Portfolio weight: 8.1%
George Soros’ 7 top stock picks in 2022:
1. Rivian Automotive Inc. (RIVN)
2. Amazon.com Inc. (AMZN)
3. Liberty Broadband Corp. (LBRDK)
4. D.R. Horton Inc. (DHI)
5. Biohaven Pharmaceutical Holding Co. Ltd. (BHVN)
6. Alleghany Corp. (Y)
7. Alphabet Inc. (GOOG, GOOGL)
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Billionaire George Soros’ 7 Top Stock Picks in 2022 originally appeared on usnews.com
Update 08/17/22: This story was published at an earlier date and has been updated with new information.
