GOOG - Tracking George Soros's Portfolio - Q2 2023 Update

2023-08-14 07:55:03 ET

Summary

• George Soros's 13F portfolio value decreased slightly from $6.49B to $6.41B, with 172 positions.
• New stakes include PDC Energy, IVERIC bio, ARK Innovation ETF Calls, Alibaba Group Holding, Five9 Puts, RenaissanceRE Holdings, and MicroStrategy Puts.
• The leveraged short positions on the market through SPY and QQQ Puts were increased substantially this quarter.

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 8/11/2023. 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 Q1 2023.

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 decreased marginally from $6.49B to $6.41B. The number of positions decreased from 185 to 172. Very small stock positions and large debt holdings together account for ~57% 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 Liberty Broadband. To learn about Soros' distinct trading style and philosophy, check out his " The Alchemy of Finance " and other works.

New stakes:

PDC Energy (PDCE), IVERIC bio ( ISEE ), ARK Innovation ETF ( ARKK ) Calls, Alibaba Group Holding ( BABA ) & Calls, Five9 ( FIVN ) Puts, RenaissanceRE Holdings ( RNR ), and MicroStrategy ( MSTR ) Puts: These are the new positions this quarter. PDC Energy and IVERIC Bio are merger-arbitrage stakes - Chevron ( CVX ) acquired PDC Energy in a ~$72 per share all-stock deal that closed last week and IVERIC Bio got acquired by Astellas Pharma ( OTCPK:ALPMF ) in a $40 per share cash deal that closed in July. The leveraged long bet using Calls on ARKK was purchased as the underlying traded between ~$35 and ~$45. ARKK is now at $42.75. BABA is a 0.68% of the portfolio position purchased at prices between ~$79 and ~$103 and the stock is now at $95.72. The leveraged short position in FIVN through Puts was established as the underlying traded between ~$52 and ~$83. There is an offsetting position through Calls in the portfolio. The stock is now at $70.49. RNR is a 0.54% of the portfolio stake established at prices between ~$180 and ~$220 and the stock is now at ~$185. The leveraged short stake in MSTR through Puts was purchased as the underlying traded between ~$271 and ~$342 and it currently trades at ~$384.

Stake Disposals:

American Water Works ( AWK ) and Academy Sports and Outdoors ( ASO ): The 0.71% AWK stake was established last quarter at prices between ~$134 and ~$161 and the stock currently trades at ~$140. The disposal this quarter was at prices between ~$140 and ~$152. ASO was a 0.68% of the portfolio position purchased last quarter at prices between ~$51 and ~$66 and it is now at $55.19. The elimination this quarter was at prices between ~$48 and ~$68.

Estee Lauder ( EL ): EL was a 0.60% of the portfolio position that saw a ~40% increase last quarter at prices between ~$235 and ~$281. The stake was sold this quarter at prices between ~$177 and ~$259. The stock currently trades at ~$168.

First Horizon ( FHN ): FHN was a ~2% merger-arbitrage stake was established during Q4 2022. TD Bank ( TD ) offered to buy First Horizon in a $25 cash deal announced last February. The deal was called off in April. The stake saw a ~14% trimming last quarter and was dropped this quarter. The stock now trades at $13.59.

Bowlero Corp. ( BOWL ) & wts: BOWL was a 0.78% of the portfolio position purchased in Q4 2021 at prices between ~$8.80 and ~$10.15 and the stock currently trades at $11.74. H2 2022 saw a ~15% reduction at prices between ~$10.60 and ~$15. That was followed with a ~63% reduction last quarter at prices between ~$13 and ~$17. The elimination this quarter was at prices between ~$11 and ~$17.

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 ~$209. The last quarter saw a ~75% selling at prices between ~$135 and ~$200. The disposal this quarter was at prices between ~$189 and ~$223.

Stake Increases:

iShares iBoxx $ Investment Grade Corporate Bond ETF ( LQD ): The LQD stake was increased by ~140% to a ~4% of the portfolio stake last quarter at prices between ~$105 and ~$112. This quarter saw a ~30% further increase at prices between ~$106 and ~$110. LQD currently trades at ~$105 and the stake is at 5.35% of the portfolio.

Invesco QQQ Trust ( QQQ ) Puts: The 4.90% short stake through Puts was established during Q4 2022 as QQQ traded between ~$260 and ~$294. The last quarter saw a one-third reduction as the underlying traded between ~$262 and ~$321. This quarter saw a ~160% stake increase as QQQ traded at prices between ~$310 and ~$370. QQQ currently trades at ~$366.

SPDR S&P 500 ETF ( SPY ) Puts: The 3.66% 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. Q4 2022 saw the stake rebuilt as the underlying traded between ~$357 and ~$408 while the last quarter saw a ~45% reduction as SPY traded between ~$379 and ~$417. There was a ~165% stake increase this quarter as SPY traded at prices between ~$404 and ~$443. SPY is now at ~$446.

Amazon.com ( AMZN ) & Calls : AMZN is a 1.56% 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 ~$138. There was a ~9% stake increase this quarter.

AerCap Holdings ( AER ), Aptiv PLC ( APTV ), B. Riley Financial ( RILY ) Puts, Confluent Inc. (CFLT) Calls, Intuit ( INTU ), Okta Inc. ( OKTA ) and PDD Holdings ( PDD ): These small (less than ~1% of the portfolio each) stakes were increased this quarter.

Stake Decreases:

Horizon Therapeutics ( HZNP ): The large merger-arbitrage stake in HZNP was established during Q4 2022. Amgen ( AMGN ) is acquiring Horizon Therapeutics in a $116.50 cash deal announced last December. FTC sued to block this deal in May. The position increased by ~60% last quarter while this quarter saw a ~28% reduction. It is currently the largest individual stock position at 5.28% of the portfolio.

Alphabet Inc. ( GOOG ): GOOG is a 2.66% 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 in the 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 during Q4 2022 at prices between ~$83.50 and ~$105. The last quarter saw a ~19% selling and that was followed with a ~3% trimming this quarter. The stock is now at ~$130.

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

Rivian Automotive ( RIVN ) & Calls: RIVN had an IPO in November 2021. Shares started trading at ~$100 and currently go for $21.57. Soros established the stake at prices between ~$85 and ~$130. Q1 2022 saw a ~30% stake increase while the next quarter saw a similar reduction. The last four quarters saw a ~80% reduction at prices between ~$12 and ~$40.

Splunk ( SPLK ) Calls and Five9 ( FIVN ) Calls: The ~1% leveraged long stake in SPLK through Calls was increased by ~115% last quarter as the underlying traded between ~$83 and ~$110. The stock is now at $98.43. There was a ~10% trimming this quarter. FIVN Calls is a leveraged long 0.51% stake that saw a ~40% increase last quarter as the stock traded between ~$60 and ~$86. This quarter saw a ~43% reduction as FIVN traded between ~$51.50 and ~$82.50. There is an offsetting long Puts stake also established this quarter. FIVN is now at $70.49.

iShares iBoxx $ High Yield Corporate Bond ETF ( HYG ) Puts: The 0.88% short position through Puts in HYG was increased by ~25% last quarter as the underlying traded between ~$73 and ~$77. The position was reduced by ~70% this quarter as HYG traded between ~$73.50 and ~$75.50. HYG is now at ~$75.

indie Semiconductor ( INDI ): The 0.44% INDI stake was built over the three quarters through Q2 2022 at prices between ~$5.35 and ~$16 and the stock currently trade at $7.49. The last quarter saw a ~63% reduction at prices between ~$5.80 and ~$11. There was a ~8% trimming this quarter.

Booking Holdings ( BKNG ) and LPL Financial ( LPLA ): These two small positions were reduced this quarter.

Kept Steady:

Liberty Broadband ( LBRDK ): LBRDK is now at 1.74% 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 ~$93.

SPDR Index Euro STOXX 50 ETF ( FEZ ): FEZ is a small ~1% of the portfolio stake established during Q4 2022 at prices between ~$30.50 and ~$41 and the stock currently trades at $45.33.

Aramark ( ARMK ): The 0.82% 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. The last quarter saw a two-thirds reduction at prices between ~$33 and ~$45. The stock is now at $39.19.

Cboe Global Markets ( CBOE ): The small 0.57% stake in CBOE stake was kept steady this quarter.

The spreadsheet below highlights Soros's significantly large 13F positions as of Q2 2023:

For further details see: