Famous Investors: How George Soros Plays the Stock Market

Famous Investors: How George Soros Plays the Stock Market

Research  these Stocks on Kapitall’s Playground Now

research now

IMlogoInterested in the strategies of famous investors like George Soros? Read on. 

Opinions of George Soros vary depending on whom you ask, but there’s no arguing against the Hungarian-American hedge fund manager’s investing pedigree. Earlier this month, Soros shared his thoughts on the Eurozone crisis at the Global Economic Symposium, and most of the usual headlines that surround the billionaire are focused on his macroeconomic views.

That’s all fine and dandy. We’d like to point out, though, that George Soros’ Soros Fund Management does maintain a $9 billion equity portfolio too. Due to the market-beating potential of hedge funds’ best stock picks, it’s useful to understand how a prominent investor like Soros is playing the stock market.

Click on the interactive charts below to see data over time. Sourced from Zacks Investment Research. 

At the end of last quarter, George Soros and his management team disclosed a little over 200-equity holdings, with 15% of their capital allocated to their top five stock picks. This level of concentration is not uncommon for a large hedge fund, but a few of the specific names may surprise you.


Other than Google (GOOG), that is. It’s really not very difficult to understand why the tech company is Soros’ No. 1 stock. Google was hedge funds’ favorite pick in the latest round of 13F filings, ahead of AIG (AIG) and Apple (AAPL). Aside from offering a bevy of long-term product innovations like self-driving cars or smart thermostats, more immediate catalysts are the launch of the Moto X and next year’s release of Google Glass. 

Both devices play into Wall Street’s bullish earnings estimates for Google, in which it expects 17% to 18% EPS growth in 2014 and 15% annual growth over the next half-decade. This trumps peers like Yahoo (YHOOand even Apple. In addition to Soros’ bullishness, big-name fund managers Ray Dalio and Israel Englander have initiated Google positions in the last few months. 

J.C. Penney

This is what we meant when we said you might be surprised. J.C. Penney (JCP) represents everything Google does not: poor market performance in 2013, high CEO turnover, an inconsistent business plan, and an uncertain future. The retailer is going back to its pre-Ron Johnson coupon strategy, which leads some to believe that it can recapture most of its old customers, and is thus undervalued at current levels.

It’s easier to be skeptical of this move than it is to support a bullish thesis, so we have a rare case where Soros is acting as a contrarian by betting on a stock rather than against it. Assuming you are for a turnaround here, J.C. Penney trades at a mere 0.15 times sales, but earnings will have to pick up. Longs can’t take many more monumental bottom line whiffs. Last quarter the retailer missed sell-side estimates by 88%, and in the first quarter of the year, EPS fell short of consensus by 36%. In fact, J.C. Penney has been in the red for a year and a half now.

A few days ago, Richard Perry cut almost half of his position in the retailer and last month, Bill Ackman liquidated his entire stake. What’s so notable about both of these moves is that Ackman’s hedge fund had the largest stake in J.C. Penney at the end of last quarter while Perry was third. 

The remaining three

After the antithetical duo of Google and J.C. Penney, Soros’ next largest holdings are Herbalife (HLF), Charter Communications (CHTR) and Johnson & Johnson (JNJ).

While Ackman and Carl Icahn continue to feud about the legitimacy of Herbalife’s marketing practices, George Soros continues to book gains. Since we know that he held shares of the company on the last day of June, it can be inferred that Soros has made at least a 51% return on his long position. If he initiated the stake earlier in the second quarter, like in early May for example, this return stretches to more than 70%. Either way, the billionaire has to be happy that it represents one of his biggest holdings.

Charter Communications, meanwhile, is another stock that is up big (+72%) in 2013. The cable entertainment company has been a long-term pick for Soros, sitting in his clutches since early 2011. The same can be said for Johnson & Johnson, which has been in Soros’ equity portfolio for exactly four quarters. Johnson & Johnson is a prototypical dividend-payer that has actually offered double-digit capital gains this year, while Charter is a growth play plain and simple.

All in all, the variety presented in George Soros’ five largest stock picks is truly one of the best things about this group. Google, J.C. Penney and Herbalife are the three we’ll watch the closest going forward, particularly when new 13F filings come in mid-November.

– Insider Monkey's Jake Mann. Article originally published here



© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC – a FINRA/SIPC member. 


8 responses to “Famous Investors: How George Soros Plays the Stock Market”

  1. dissertation says:

    It’s simpler to steer of this shift than it is to back up a favorable dissertation, so we have a unusual situation where Soros is performing as a contrarian by gambling on a inventory rather than against it.This stage of focus is not unusual for a huge protect finance, but a few of the particular titles may shock you.

  2. Shawna says:

    This is a great topic and tips you have covered here. I can use these tips to find myself helpful in the future investment opportunities.

  3. Mafij says:

    The service should guarantee your treatise writing reflects a tutorial type of writing, from the introduction to the conclusion. additionally to manually associate degreed completely checking the treatise manually by an knowledgeable editor, dissertation writing services

  4. ALEXANDRINA says:

    Such a to a mind blowing degree solid article. Uncommonly hypnotizing to inspect this article.I may need to thank you for the tries you had made for making this incomprehensible article. essay on time

  5. I truly make certain that this content with this weblog are great and incredibly educational along with beneficial to followers. The actual product included in the content is very comprehensive, uncomplicated which enables it to possibly be paid for. I enjoy reading with luck , I can present to additional visitors.

  6. Clark Best says:

    There are some people enough money invest the personal business. This article related the business development. This article is really very interesting and informative for me. Thanks for sharing this post. keep it up.
    personalized hang tags

  7. njkyj says:

    ffheth fg ren

  8. Jamie says:

    Kapitall wire is really very interesting and informative for me. I would like to say that the artical provided the her kinds of her products. Thanks for sharing in this the post. keep it up.
    uk airport taxi booking

Leave a Reply

Your email address will not be published. Required fields are marked *

  • See Most Recent Articles