ASO - Tracking George Soros's Portfolio - Q1 2023 Update

2023-05-17 00:19:41 ET

Summary

• Soros' 13F portfolio value decreased from $7.26B to $6.49B this quarter. The number of positions decreased from 208 to 185.
• Soros increased Horizon Therapeutics and Splunk while decreasing Rivian, Amazon, Alphabet, and First Horizon.
• Horizon Therapeutics at 7.68% of the portfolio is the largest position.

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 5/12/2023. 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 Q4 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 ~11% this quarter from $7.26B to $6.49B. The number of positions decreased from 208 to 185. Very small stock positions and large debt holdings together account for ~64% 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 Horizon Therapeutics, Alphabet, and First Horizon. To learn about Soros' distinct trading style and philosophy, check out his " The Alchemy of Finance " and other works.

New stakes:

American Water Works ( AWK ) and Academy Sports and Outdoors ( ASO ): The 0.71% AWK stake was established this quarter at prices between ~$134 and ~$161 and the stock currently trades at ~$145. ASO is a 0.68% of the portfolio position purchased at prices between ~$51 and ~$66 and it is now at $55.83.

Stake Disposals:

Altra Industrial Motion and Signify Health: These two merger-arbitrage stakes were established last quarter. Regal Rexnord ( RRX ) acquired Altra Industrial Motion in a $62 cash deal announced last October. CVS Health ( CVS ) acquired Signify Health in a $30.50 cash deal announced last September. Both transactions closed in March.

Capital One Financial ( COF ) Puts: The short position through Puts in COF was established last quarter as the underlying traded between ~$88 and ~$116. The position was closed this quarter as COF traded between ~$90 and ~$122. It is now at ~$91.

Tesla ( TSLA ) and Calls: TSLA was a 0.56% of the portfolio position that saw a ~270% stake increase last quarter at prices between ~$109 and ~$265. The stake was sold this quarter at prices between ~$108 and ~$214. The stock currently trades at ~$167.

D.R. Horton ( DHI ): The 0.85% 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. There was a one-third selling over the two quarters through Q1 2022 at prices between ~$75 and ~$110. That was followed with a ~75% reduction last quarter at prices between ~$67 and ~$90. The disposal this quarter was at prices between ~$90 and ~$103. The stock currently trades at $112.

Invesco QQQ ETF ( QQQ ) & Calls: The original large position in QQQ was built during the two quarters through Q3 2022 as it traded at prices between ~$267 and ~$369. Last quarter saw the position reduced by ~75% at prices between ~$260 and ~$294. The disposal this quarter was at prices between~ $262 and ~$321. It is now at ~$327.

iShares Barclays 1-5yr Bond Fund ( IGSB ): The small 0.69% stake in IGSB was dropped this quarter.

Stake Increases:

Horizon Therapeutics ( HZNP ): The large merger-arbitrage stake in HZNP was established last quarter. Amgen ( AMGN ) is acquiring Horizon Therapeutics in a $116.50 cash deal announced last December. Earlier this week, FTC sued to block this deal. The position was increased by ~60% this quarter and it is currently the largest 13F stake at 7.68% of the portfolio.

iShares iBoxx $ Investment Grade Corporate Bond ETF ( LQD ) and iShares iBoxx $ High Yield Corporate Bond ETF ( HYG ) Puts: The LQD stake was increased by ~140% to a ~4% of the portfolio stake this quarter at prices between ~$105 and ~$112. LQD currently trades at ~$107. The 2.91% short position through Puts in HYG was increased by ~25% this quarter as the underlying traded between ~$73 and ~$77. HYG is now at ~$74. Soros increased exposure to high quality corporate bonds while shorting high yield corporate bonds.

Splunk ( SPLK ) Calls and Five9 ( FIVN ) Calls: The ~1% leverage long stake in SPLK through Calls was increased by ~115% this quarter as the underlying traded between ~$83 and ~$110. It is now at $88.47. FIVN Calls is a leveraged long 0.78% stake that saw a ~40% increase this quarter as the stock traded between ~$60 and ~$86. FIVN is now at $54.50.

Estee Lauder ( EL ): EL is a 0.60% of the portfolio position that saw a ~40% increase this quarter at prices between ~$235 and ~$281. The stock currently trades at ~$195.

Booking Holdings ( BKNG ) and LPL Financial ( LPLA ): These two small positions saw minor increases this quarter.

Stake Decreases:

Alphabet Inc. ( GOOG ): GOOG is a 2.34% 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. That was followed with a ~80% stake increase last quarter at prices between ~$83.50 and ~$105. This quarter saw a ~19% selling. The stock is now at ~$120.

Note: Alphabet is a frequently traded stock in Soros' portfolio.

First Horizon ( FHN ): This ~2% merger-arbitrage stake was established last quarter. TD Bank ( TD ) offered to buy First Horizon in a $25 cash deal announced last February. The deal was called off earlier this month. The stake saw a ~14% trimming this quarter. The stock now trades at $10.25.

Invesco QQQ ETF ( QQQ ) Puts: The 1.63% short stake through Puts was established last quarter as QQQ traded between ~$260 and ~$294. This quarter saw a one-third reduction as the underlying traded between ~$262 and ~$321. QQQ currently trades at $327.

SPDR S&P 500 Trust ETF ( SPY ) Puts: The 1.26% 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 next two quarters as the underlying traded between ~$357 and ~$457. The last quarter saw the stake rebuilt as the underlying traded between ~$357 and ~$408 while this quarter saw a ~45% reduction as SPY traded between ~$379 and ~$417. SPY is now at ~$410.

Rivian Automotive ( RIVN ) & Calls: RIVN had an IPO in November 2021. Shares started trading at ~$100 and currently goes for $13.08. Soros established the stake at prices between ~$85 and ~$130. Q1 2022 saw a ~30% stake increase while next quarter saw a similar reduction. The last three quarters saw a ~75% reduction at prices between ~$13 and ~$40.

Amazon.com ( AMZN ) & Calls : AMZN is a 1.13% 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 in Q2 2022 at prices between ~$102 and ~$168. The last two quarters saw a two-thirds reduction at prices between ~$82 and ~$121. The stock currently trades at ~$113.

Bowlero Corp. ( BOWL ) & wts: BOWL is a 0.78% of the portfolio position purchased in Q4 2021 at prices between ~$8.80 and ~$10.15 and the stock currently trades well above that range at $13.77. The last two quarters saw a ~15% reduction at prices between ~$10.60 and ~$15. That was followed with a ~63% reduction this quarter at prices between ~$13 and ~$17.

Aramark Inc. ( ARMK ): The 0.68% ARMK stake saw a ~200% increase in 2021 at prices between ~$31.50 and ~$42.25. Q1 2022 saw a one-third reduction at prices between ~$33 and ~$38. This quarter saw a two-thirds reduction at prices between ~$33 and ~$45. The stock is now at $37.84.

Indie Semiconductor ( INDI ): The 0.53% INDI stake was built over the three quarters through Q2 2022 at prices between ~$5.35 and ~$16 and the stock currently trades at $8.55. This quarter saw a ~63% reduction at prices between ~$5.80 and ~$11.

Salesforce ( CRM ): The 0.52% of the portfolio CRM stake was built over the five quarters through Q3 2022 at prices between ~$144 and ~$310 and the stock currently trades at ~$205. This quarter saw a ~75% selling at prices between ~$135 and ~$200.

SPDR S&P 500 ( SPY ) & Calls: A long position through SPY Calls was established in Q4 2021 as the underlying traded between ~$429 and ~$478. There was a ~50% stake increase in Q2 2022 as SPY traded between ~$366 and ~$457. The last quarter saw a ~25% selling as SPY traded between ~$357 and ~$408. The position was almost sold out this quarter as SPY traded between ~$379 and ~$417. It is now at ~$410.

Intuit ( INTU ) and KraneShares CSI China Internet ETF ( KWEB ): These two small positions were reduced during the quarter.

Kept Steady:

Liberty Broadband ( LBRDK ): LBRDK is now at 1.75% 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. The four quarters through Q3 2022 saw another roughly two-thirds reduction at prices between ~$74 and ~$191. The stock currently trades at $76.45.

SPDR EURO STOXX 50 ETF ( FEZ ): FEZ is a small 0.95% of the portfolio stake established last quarter at prices between ~$30.50 and ~$41 and the stock currently trade at $45.44.

Okta, Inc. ( OKTA ) and Cboe Global Markets ( CBOE ): These two small stakes were kept steady this quarter.

The spreadsheet below highlights Soros's significantly large 13F positions as of Q1 2023:

For further details see: