TNTTF - Tracking George Soros's Portfolio - Q4 2022 Update

Summary

• Soros' 13F portfolio value increased from $5.86B to $7.26B this quarter. The number of positions decreased from 270 to 208.
• Soros increased Alphabet and Tesla while decreasing Rivian, Amazon, Nike, T-Mobile, and Biohaven.
• Horizon Therapeutics at 4.48% 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 2/13/2023. 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 Q3 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 ~24% this quarter from $5.86B to $7.26B. The number of positions decreased from 270 to 208. 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, Rivian Automotive, and First Horizon. To learn about Soros' distinct trading style and philosophy, check out his " The Alchemy of Finance " and other works.

New stakes:

Altra Industrial Motion ( AIMC ), Horizon Therapeutics ( HZNP ), First Horizon ( FHN ), and Signify Health ( SGFY ): These merger-arbitrage stakes were established this quarter. Regal Rexnord ( RRX ) is buying Altra Industrial Motion in a $62 cash deal announced last October. It is now at $61.70. Amgen ( AMGN ) is acquiring Horizon Therapeutics in a $116.50 cash deal announced last December. The stock currently trades at ~$110. TD Bank ( TD ) is acquiring First Horizon in a $25 cash deal announced last February. CVS Health ( CVS ) is acquiring Signify Health in a $30.50 cash deal announced last September.

Invesco QQQ Trust ( QQQ ) Puts and Capital One Financial ( COF ) Puts: These two short stakes through Puts were established this quarter. QQQ traded between ~$260 and ~$294 during the quarter and currently goes for ~$294. COF traded between ~$88 and ~$116 and it is now at ~$108.

SPDR EURO STOXX 50 ETF ( FEZ ): FEZ is a small 0.73% of the portfolio stake established at prices between ~$30.50 and ~$41 and the stock currently trade at $43.29.

Stake Disposals:

Select Sector Energy ( XLE ) Puts: The 1.54% short position in XLE through Puts was established last quarter as it traded between $67.50 and $84. The disposal this quarter happened as the underlying traded between ~$72 and ~$94. It currently trades at ~$86.

Alleghany Corp, ChemoCentryx Inc., Duke Realty, and Sierra Wireless: These merger-arbitrage stakes got disposed as those merger transactions closed. Berkshire Hathaway ( BRK.B ) acquired Alleghany in $848.02 per share all-cash deal that closed in October. ChemoCentryx got acquired by Amgen (AMGN) and the transaction closed last October. Prologis ( PLD ) acquired Duke Realty in an all-stock deal that closed in October. Sierra Wireless got acquired by Semtech Corporation ( SMTC ) in a $31 per share all-cash deal that closed in January.

SPDR Portfolio Short Term Corporate Bond ETF ( SPSB ) and Sea Limited ( SE ) Puts: These two small (less than ~0.70% of the portfolio each) stakes were disposed during the quarter.

Stake Increases:

Alphabet Inc. ( GOOG ): GOOG is a 2.19% 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 this quarter at prices between ~$83.50 and ~$105. The stock is now at $92.31.

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

SPDR S&P 500 Trust ETF ( SPY ) Puts: The ~2 % 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.This quarter saw the stake rebuilt as the underlying traded between ~$357 and ~$408. SPY is now at ~$398.

Tesla ( TSLA ) and Calls: TSLA is a 0.56% of the portfolio position that saw a ~270% stake increase this quarter at prices between ~$109 and ~$265. The stock currently trades at ~$191.

Stake Decreases:

Rivian Automotive ( RIVN ) & Calls: RIVN had an IPO last November. Shares started trading at ~$100 and currently goes for $15.72. Soros established the stake at prices between ~$85 and ~$130. Q1 2022 saw a ~30% stake increase while next quarter saw a similar reduction. It is their second-largest position at 3.64% of the portfolio. Last two quarters saw a ~20% reduction at prices between ~$17.75 and ~$40.

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 ~$5B. Rivian's Enterprise Value is somewhat skewed as they have a huge net cash position of ~$12B and a lot of that would be consumed in Capex in the coming quarters.

Aramark ( ARMK ): The ~2% 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 stock is now at $37.18. There was a ~7% trimming this quarter.

Bowlero Corp. ( BOWL ) & wts: BOWL is a 1.51% 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 $15.90. Last two quarters saw a ~15% reduction at prices between ~$10.60 and ~$15.

Note: Soros has a 7.42% ownership stake in the business.

Salesforce, Inc. ( CRM ): The 1.18% of the portfolio CRM stake was built over the last five quarters at prices between ~$144 and ~$310 and the stock currently trades at ~$187. This quarter saw a ~5% trimming.

SPDR S&P 500 Trust ( SPY ) Calls: The 1.16% 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 in Q2 2022 as SPY traded between ~$366 and ~$457. This quarter saw a ~25% selling as SPY traded between ~$357 and ~$408. It is now at ~$398.

Amazon.com ( AMZN ) : AMZN is a ~1% 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. This quarter saw a ~55% reduction at prices between ~$82 and ~$121. The stock currently trades at ~$92.

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. Recent activity follows. There was a roughly one-third selling over the two quarters through Q1 2022 at prices between ~$75 and ~$110. That was a followed with a ~75% reduction this quarter at prices between ~$67 and ~$90. The stock currently trades at $90.79.

indie Semiconductor ( INDI ): The ~1% INDI stake was built over the three quarters through Q2 2022 at prices between ~$5.35 and ~$16 and the stock currently trades at $10.45. There was minor trimming in the last two quarters.

Note: They have a ~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 ~$256 and the stake is now very small at 0.51% of the portfolio. There was a ~12% trimming in the last two quarters.

Invesco QQQ ETF ( QQQ ) & Calls: QQQ & Calls is now a small 0.47% stake. The original large position was built during the last two quarters as QQQ traded at prices between ~$267 and ~$369. This quarter saw the position reduced by ~75% as QQQ traded between ~$260 and ~$294. It is now at ~$294.

FIGS, Inc. ( FIGS ): FIGS had an IPO in June 2021. Shares started trading at ~$30 and currently goes for $6.98. Soros' stake is at 0.29% 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. This quarter saw the position reduced by ~25% at prices between ~$5.85 and ~$9.85.

Biohaven Limited ( BHVN ): The original Biohaven stake was a merger-arbitrage position built over the last two quarters. Pfizer ( PFE ) acquired Biohaven in a $148.50 per share all-cash deal that closed last October. New Biohaven was spun off simultaneously to shareholders of Biohaven in the ratio 2:1. The resultant position was almost sold out during the quarter.

Accenture plc ( ACN ), Intuit ( INTU ), Nike Inc. ( NKE ), iShares Barclays 1-5yr Corporate Bond Fund ( IGSB ), and T-Mobile US ( TMUS ): These small (less than ~0.75% of the portfolio each) stakes were reduced during the quarter.

Kept Steady:

Liberty Broadband ( LBRDK ): LBRDK is now at 1.46% 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 another roughly two-thirds reduction at prices between ~$74 and ~$191. The stock currently trades at $85.44.

DISH Network ( DISH ) Puts and Freshworks ( FRSH ): These very small (less than ~1% of the portfolio each) stakes were kept steady this quarter.

The spreadsheet below highlights Soros's significantly large 13F positions as of Q4 2022:

For further details see: