雅虎香港財經 Top 12 Stocks in George Soros’ Stock Portfolio
In this article, we discuss the top 12 stocks in George Soros’ stock portfolio. To skip the details on Soros’ life, investment philosophy, and his fund’s latest bets, go directly to the Top 5 Stocks in George Soros' Stock Portfolio.
Billionaire George Soros is one of the most famous hedge fund managers in the world, primarily known for shorting $10 billion worth of British pounds on September 16, 1992, a day known as “Black Wednesday." This trade made Soros $1 billion in profit in a single day as the currency declined against the German mark and US dollar by 15% and 25%, respectively. After this event, he has been known as "the man who broke the Bank of England."
While Black Wednesday was the event that made George Soros a huge celebrity, it wasn't his only successful foreign exchange bet. His global macro-investing strategies have made billions for him and his firm. He made $1 billion from Thailand's financial crisis in 1997, and in 2013, he made big bucks by betting against the Japanese yen.
Like all successful investors, Soros also faced some setbacks in his life. One such example would be his investments in Russian bonds in 1998. When the Russian financial crisis deepened, Russia defaulted on its debt obligations, including its government bonds. His firm lost $2 billion on the investment. However, this loss was just a small hurdle in his career and an insignificant event compared to his overall performance. He has still proven himself as one of the most successful people in the world of finance despite his few failures.
Soros founded Soros Fund Management in 1970, which was formerly a hedge fund and is now a family office since 2011. He retired from all his responsibilities in June 2023 and handed them over to his son. As of February 28, George Soros has a net worth of $6.7 billion, according to Forbes.
Soros is also known as one of the greatest philanthropists. He has donated $32 billion to philanthropic causes. In 1993, he founded Open Society Foundations, which focuses on causes such as justice, education, public health, and independent media.
Investment Philosophy
Soros's investment strategies combined scientific analysis, such as his application of economic theories like reflexivity, with an understanding of market dynamics and human behavior. This approach allowed him to achieve significant success as an investor. His reflexivity theory suggests that the perceptions and actions of individuals can influence and even distort the reality they perceive. The theory suggests that our beliefs about the world can shape the way the world works. In financial markets, it suggests that investors' beliefs about the value of assets can affect the actual value of those assets, leading to bubbles or crashes.
In his book, The Alchemy of Finance, Soros said:
“The fact that a thesis is flawed does not mean that we should not invest in it as long as other people believe in it and there is a large group of people left to be convinced. The point was made by John Maynard Keynes when he compared the stock market to a beauty contest where the winner is not the most beautiful contestant but the one whom the greatest number of people consider beautiful. Where I have something significant to add is in pointing out that it pays to look for the flaws; if we find them, we are ahead of the game because we can limit our losses when the market also discovers what we already know. It is when we are unaware of what could go wrong that we have to worry.”
George Soros' reflexivity theory made him a contrarian investor. He is known for his ability to identify undervalued assets and invest in them when others are selling. Between 1970 and 2000, Soros had an average annual returns of 30%, which makes him one of the most successful portfolio managers in the world.
Soros Fund Management Q4 Bets
In the fourth quarter, Soros Fund Management’s 13F portfolio value increased from $7.05 billion to $7.65 billion. The fund made 75 new purchases, including Eli Lilly and Company (NYSE:LLY) and Avantor, Inc. (NYSE:AVTR). The firm increased its holdings in 75 stocks, including a 482% increase in Sempra (NYSE:SRE) and 237% in Neurocrine Biosciences, Inc. (NASDAQ:NBIX). Sempra is also among the stocks in our list of the Best Stocks to Buy Before US Election Season 2024.
In addition, Soros Fund decreased its holdings in 41 stocks and completely closed out 75 positions. Some of the top stocks in George Soros’ stock portfolio include Splunk Inc. (NASDAQ:SPLK), AerCap Holdings N.V. (NYSE:AER), and Alphabet Inc. (NASDAQ:GOOGL).
George Soros of Soros Fund Management
Our Methodology
For this article, we scanned Soros Fund Management’s Q4 2023 portfolio and picked its top 12 stocks. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
Top 12 Stocks in George Soros' Stock Portfolio
12. Accenture plc (NYSE:ACN)
Accenture plc (NYSE:ACN) is a Dublin-based company engaged in providing management and technology consulting services and solutions.
On February 20, Accenture plc (NYSE:ACN) reported that it is planning to acquire GemSeek. The company would expand its offerings, including customer analytics and AI capabilities through this acquisition.
Accenture plc (NYSE:ACN) is one of the top stocks in George Soros’ stock portfolio, along with Splunk Inc. (NASDAQ:SPLK), AerCap Holdings N.V. (NYSE:AER), and Alphabet Inc. (NASDAQ:GOOGL).
ClearBridge Investments stated the following regarding Accenture plc (NYSE:ACN) in its fourth quarter 2023 investor letter:
“Another welcome change has been the recognition of generative artificial intelligence (AI) opportunities for companies outside the U.S. While our IT holdings trailed their mega cap U.S. counterparts for most of the year, semiconductor equipment makers ASML and Tokyo Electron, which we consider enablers of AI, as well as enterprise software maker SAP and IT consultant Accenture plc (NYSE:ACN), which we see as facilitators of AI adoption in new product lines and/or enhanced business models, rose strongly in the quarter. These companies are rolling out new, AI-enhanced products at higher prices which should positively impact earnings in the near term.”
11. Uber Technologies, Inc. (NYSE:UBER)
Uber Technologies, Inc. (NYSE:UBER) is a California-based company that provides freight transport, ride-hailing services, food delivery, and more.
On February 20, Uber Technologies, Inc. (NYSE:UBER) announced that Uber Eats is expanding its autonomous operations internationally to Japan by the end of next month. The company, in partnership with Mitsubishi Electric and Cartken, will deliver food through the use of autonomous robots in some parts of Tokyo.
On February 14, Uber Technologies, Inc. (NYSE:UBER) announced its first-ever share repurchase program through which the company will buy back its common stock of up to $7 billion.
RiverPark Advisors mentioned Uber Technologies, Inc. (NYSE:UBER) in its fourth quarter 2023 investor letter. Here is what it said:
“Uber Technologies, Inc. (NYSE:UBER): UBER was a top contributor in the quarter following better than expected 3Q23 earnings and 4Q23 guidance. Gross bookings of $35.3 billion were up 21% year over year. Mobility gross bookings of $17.9 billion grew 30% over last year driven by a combination of product innovation and driver availability. Delivery gross bookings of $16 billion were up 16% from last year and continued to be strong throughout the quarter. 1Q Adjusted EBITDA of $1.1 billion, up $576 million year over year, was better than management’s guidance of $1 billion, and the company generated $900 million of free cash flow, up from $358 million last year. Management guided to continuing growth in 4Q Gross Bookings (23.5% growth) and Adjusted EBITDA (of $1.2 billion).
UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates.1 Moreover, after a history of losses, the company is now profitable, delivering expanding margins and substantial free cash flow. We view UBER as more than a ride sharing and food delivery service; we also see it as a global mobility platform with 142 million users (by comparison, Amazon Prime has 200 million members) and the ability to penetrate new markets of on-demand services, such as package and grocery delivery, travel, and hourly worker staffing. Given its $5.2 billion of unrestricted cash and $5.1 billion of investments, the company today has an enterprise value of $128 billion, indicating that UBER trades at 21x our estimates of next year’s free cash flow.”
10. Jacobs Solutions Inc. (NYSE:J)
Jacobs Solutions Inc. (NYSE:J) is a Texas-based company that offers technical professional services, including but not limited to construction services and scientific and specialty consulting.
On February 15, Jacobs Solutions Inc. (NYSE:J) announced that it was chosen as the lead design consultant by Rua Al Madinah Holding Company for a big urban development project in Saudi Arabia.
On January 25, Jacobs Solutions Inc. (NYSE:J) increased its quarterly dividend by 11.5% to $0.29, payable by March 22 to the shareholders of record on February 23. As of the February 28 market close, the stock’s dividend yield was 0.79%.
Madison Investments commented on Jacobs Solutions Inc. (NYSE:J) in its fourth quarter 2023 investor letter. Here is what it said:
“Jacobs Solutions Inc. (NYSE:J) was down after missing earnings expectations and providing 2024 guidance below expectations. While revenue growth remains strong with high single digit growth, costs were higher than expected mostly related to the carrying cost of the upcoming spin of its government services business. We estimate that post the spin, Jacobs will have a higher growth rate and higher margin profile with an improved balance sheet.”
9. Booking Holdings Inc. (NASDAQ:BKNG)
Booking Holdings Inc. (NASDAQ:BKNG) is a Connecticut-based company that offers online travel and related services.
On February 22, Booking Holdings Inc. (NASDAQ:BKNG) initiated its quarterly dividend of $8.75, payable by March 28 to the shareholders of record on March 8. The stock’s dividend yield was 1.001% as of the February 28 market close.
In the fourth quarter, Booking Holdings Inc. (NASDAQ:BKNG) reported a non-GAAP EPS of $32.00, which beat the estimates by $1.95. The revenue increased by 18.0% year-over-year (YoY) to $4.78 billion, surpassing the estimates by $70 million.
Ensemble Capital Management stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its fourth quarter 2023 investor letter:
“Booking Holdings Inc. (NASDAQ:BKNG) (7.60% weight in the Fund): Earlier this year, Booking Holdings rolled out an AI trip planner. Traditionally Booking helps users find the right hotel by offering a search engine to define which city you want to stay in and apply various filters to narrow down the hotel options. With Booking’s AI Trip Planner, a user can use natural language such as “plan a road trip on Route 66, starting in Chicago and ending to Los Angeles.” The Trip Planner then engages with the user like a travel agent, suggesting which cities to stay in each night and various sights to see along the way. Once the trip is planned out, the user can use natural language to generate hotel options, such as by writing “My budget is $200 to $300 a night. It will be my husband and I traveling together.”
Booking’s experiments in AI demonstrate the value of proprietary data sets. While general AI systems such as ChatGPT are designed to answer questions about anything, focused AI systems that leverage a company’s unique data can be far more powerful when applied to specific use cases. With Booking’s AI Trip Planner, the system is unable to answer questions unrelated to making travel reservations. But on the other hand, it is far more likely to understand what the user wants since it already knows that the entire conversation will be about travel. Importantly, Booking’s AI Trip planner has access to the company’s enormous dataset that includes hotel ratings, popular hotels, and all sorts of detailed information about each hotel.”
8. Amazon.com, Inc. (NASDAQ:AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) is a Washington-based company that focuses on e-commerce, AI, cloud computing, online advertising, and more. The company grabs the eighth spot on our list of top stocks in George Soros’ stock portfolio.
According to Insider Monkey’s database that tracks 933 elite hedge funds, hedge fund sentiment was positive toward Amazon.com, Inc. (NASDAQ:AMZN) in Q4 as the number of hedge funds with investments in the stock was 293, up from 286 in the previous quarter. Ken Fisher’s Fisher Asset Management was the top investor in the company and owned 42.24 million shares worth $6.42 billion.
On February 26, Amazon.com, Inc. (NASDAQ:AMZN) announced that its cloud computing unit plans on making an investment worth $5 billion in Mexico for cloud infrastructure projects over the next 15 years.
Amazon.com, Inc. (NASDAQ:AMZN) was mentioned in Polen Capital’s fourth-quarter 2023 investor letter. Here is what it said:
“Amazon.com, Inc. (NASDAQ:AMZN), which saw significant price appreciation throughout much of 2023, saw its share price increase materially in Q4 following the company’s Q3 2023 earnings report. We have yet to see the long-awaited re-acceleration in AWS (Amazon Web Services) revenue growth. However, in our estimation, the segment’s growth has likely bottomed, and we could see accelerating growth in 2024. Further, Amazon’s e-commerce business has gradually re-accelerated from 2022’s levels and, perhaps most importantly, the company’s margins and free cash flow have rebounded materially from last year. This rebound in margins and free cash flow at Amazon has been a key component of our long-term thesis for the business, and we expect the improvement in these metrics to continue into 2024 and beyond (though perhaps not linearly) as the company continues to optimize costs and capital expenditures. Our position in Amazon reflects our positive long-term expectations of the business, and it is currently our largest absolute weight in the Portfolio.”
7. American Equity Investment Life Holding Company (NYSE:AEL)
American Equity Investment Life Holding Company (NYSE:AEL) is an Iowa-based company that is engaged in developing, marketing, issuing, and administering annuities and life insurance products.
On February 1, American Equity Investment Life Holding Company (NYSE:AEL) declared a quarterly dividend of $0.3718, payable by March 1 to the shareholders of record on February 15. As of the February 28 market close, the stock’s dividend yield was 0.65%.
On February 14, American Equity Investment Life Holding Company (NYSE:AEL) announced its Q4 earnings result with a non-GAAP EPS of $1.99, topping the estimates by $0.24. The revenue of $1.06 billion grew 62.5% YoY.
First Pacific Advisors made the following comment about American Equity Investment Life Holding Company (NYSE:AEL) in its Q3 2023 investor letter:
“American Equity Investment Life Holding Company (NYSE:AEL) is a leading writer of fixed-index annuities. The company is undergoing an ambitious transformation plan, led by CEO Anant Bhalla, to diversify into alternatives and move assets off balance sheet, creating a fee income stream and freeing up-capital for buybacks (a program they refer to as AEL 2.0). As of 23Q2, AEL had 25% of its balance sheet in private assets. The company has had several takeover offers over the years and on June 27, 2023 Brookfield bid $55 per share for the business.”
6. CRH plc (NYSE:CRH)
CRH plc (NYSE:CRH) is an Ireland-based company that manufactures and distributes building materials in Europe and the Americas.
On February 26, CRH plc (NYSE:CRH) announced that it would acquire Adbri with the Barro Group. The company would acquire 57% of the ordinary shares, and the transaction is expected to be completed in 2024.
Splunk Inc. (NASDAQ:SPLK), AerCap Holdings N.V. (NYSE:AER), and Alphabet Inc. (NASDAQ:GOOGL) are some of the top stocks in George Soros’ stock portfolio besides CRH plc (NYSE:CRH).
ClearBridge Investments commented on CRH plc (NYSE:CRH) in its fourth quarter 2023 investor letter. Here is what it said:
“Despite these risks, our holdings in Europe and the U.K. found their footing in the fourth quarter, with eight of the top 10 individual contributors coming from these regions. Irish building materials supplier CRH plc (NYSE:CRH), which has demonstrated strong value creation through M&A and optimization of its portfolio assets over the last several quarters, rose strongly on positive sentiment after its investor day highlighted the company’s accelerating growth in the U.S.”
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Disclosure. None. Top 12 Stocks in George Soros' Stock Portfolio is originally published on Insider Monkey.
