According to current portfolio statistics, a Premium feature of GuruFocus, the top five holdings of George Soros (Trades, Portfolio)’ Soros Fund Management as of the first quarter were Horizon Therapeutics PLC (HZNP, Financial), Alphabet Inc. (GOOGL, Financial), First Horizon Corp. (FHN, Financial), Liberty Broadband Corp. (LBRDK, Financial) and Amazon.com Inc. (AMZN, Financial).
Guru hands control of his financial empire to his son
According to an exclusive Wall Street Journal interview, Soros announced over the weekend that he gave control of his $25 billion empire to his son Alex. The son explained in the interview how he and his father think alike on political and human rights issues.
Soros Fund Management overview
Soros partnered with Stanley Druckenmiller (Trades, Portfolio) during the 1990s, famously shorting the British pound in 1992. The guru converted his firm into a family office in 2011.
Soros Fund Management invests using a theory of reflexivity, which is based on the premise that individual investor biases affect market transactions and the economy. Opportunities can be found by studying the market prices of assets, which can change based on the volume of buys and sells from highly emotional traders.
As of March, the firm’s $3.55 billion 13F equity portfolio contains 144 stocks with a quarterly turnover ratio of 13%. The top four sectors in terms of weight are technology, health care, consumer cyclical and financial services, accounting for 16.50%, 14.03%, 13.25% and 11.09% of the equity portfolio.
Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Horizon Therapeutics
Soros Fund Management owns 3,291,801 shares of Horizon Therapeutics (HZNP, Financial), giving the position 10.12% equity portfolio weight.
Shares of Horizon Therapeutics traded around $99.65 on Monday, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.77.
The Irish biotech company has a GF Score of 85 out of 100 based on a rank of 9 out of 10 for momentum and GF Value, a profitability rank of 6 out of 10 and a rank of 7 out of 10 for growth and financial strength.
Even though the company’s three-year earnings per share decline rate of 8.5% underperforms approximately 74% of global competitors, Horizon Therapeutics’ three-year revenue growth rate of 34.5% outperforms more than 90% of global biotech companies.
Alphabet
The firm owns 1,419,080 Class A shares of Alphabet (GOOGL, Financial), dedicating 4.15% of its equity portfolio to the position.
Shares of Alphabet traded around $123.46 on Monday, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.83.
The Mountain View, California-based online search giant has a GF Score of 95 out of 100 based on a momentum rank of 10 out of 10, a GF Value rank of 7 out of 10 and a rank of 9 out of 10 for profitability, growth and financial strength.
Alphabet’s high financial strength is driven by several positive investing signs, which include a strong Altman Z-score of 11 and an interest coverage ratio that outperforms more than 69% of global competitors.
First Horizon
The firm owns 7,309,487 shares of First Horizon (FHN, Financial), allocating 3.66% of its equity portfolio to the holding.
Shares of First Horizon traded around $11.81 on Monday, showing the stock is significantly undervalued based on its price-to-GF-Value ratio of 0.67.
The Memphis, Tennessee-based bank has a GF Score of 53 out of 100 based on a momentum rank of 1 out of 10, a GF Value rank of 10 out of 10 and a rank of 4 out of 10 for financial strength and profitability. Despite this, the stock does not have enough data to compute a growth rank and thus, the GF Score may give an incomplete picture of the company's potential.
The regional bank's low financial strength is driven by several warning signs, which include a cash-to-debt ratio that underperforms approximately 72% of global competitors and a debt-to-equity ratio that underperforms over 52% of global banks.
Liberty Broadband
Soros Fund Management owns 1,389,893 shares of Liberty Broadband (LBRDK, Financial), giving the position 3.20% equity portfolio weight.
Shares of Liberty Broadband traded around $17.77 on Monday, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.81.
The U.K.-based telecom services company has a GF Score of 76 out of 100 based on a rank of 7 out of 10 for momentum and GF Value, a profitability rank of 6 out of 10, a growth rank of 5 out of 10 and a financial strength rank of 4 out of 10.
Amazon.com
Soros Fund Management owns 706,561 shares of Amazon.com (AMZN, Financial), giving the position 2.06% equity portfolio weight.
Shares of Amazon.com traded around $126.57 on Monday, showing the stock is significantly undervalued based on its price-to-GF Value ratio of 0.63.
The Seattle-based e-commerce giant has a GF Score of 94 out of 100 based on a rank of 10 out of 10 for momentum and growth, a financial strength rank of 6 out of 10 and a rank of 8 out of 10 for GF Value and profitability.
