"Tracking George Soros’s Portfolio – Q4 2013 Update"
"This article is part of a series that provides an ongoing analysis of the changes made to George Soros’s US stock portfolio on a quarterly basis. It is based on George Soros’s regulatory  filed on 02/14/2014. Please visit our  for an idea on how his holdings have progressed over the years and our  highlighting the fund’s moves during Q3 2013.Soros Fund Management invests globally and the long positions in the US market reported in the 13F filings represent only ~25% of the overall portfolio. The 13F portfolio increased this quarter from $9.14B to $11.77B. The number of positions increased from 232 to 237. Very small stock positions and large debt holdings together account for ~40% of the 13F holdings. The US long investments are diversified with a large number of very small equity positions, a small number of very large equity positions, and a number of large debt holdings. As the small positions (<0.5%) do not indicate a clear bias, the focus of this article is on the larger US long equity positions.Consistent with Soros’s active trading style, among his larger positions, just three remained untouched during the quarter. Ten of the larger positions that figured in the Q3 2013 report were eliminated this quarter and eleven new positions were added. To learn about his distinct trading style and philosophy, check out his “” and other works.New stakes:Select Section SPDR Energy (XLE) Puts: XLE Puts are a 3.38% of the US long portfolio position established this quarter. Soros was short Chevron through Puts last quarter but this quarter that stake was sold and replaced with these Puts.S&P 500 SPDR (SPY) Calls: SPY Calls are a very small 0.64% of the US long portfolio position established this quarter. It partially offsets a huge 11.12% SPY Puts position. Overall, Soros has a huge short position in SPY.Citigroup (C), Essent Group (ESNT), JPMorgan Chase (JPM), Leucadia National (LUK), and Monsanto (MON): These are small (less than ~1.5% of the US long portfolio) positions established this quarter. The stake establishments indicate a mild bullish bias.Alcoa (AA) Puts, Caesars Acquisition (CACQ), Citrix Systems (CTXS), and Polycom Inc. (PLCM): These are very small (less than ~1% of the US long portfolio) positions established this quarter. As the position sizes are very small, the stake establishments do not indicate a clear bias.Stake Disposals:American International Group (AIG): AIG was Soros’s largest equity long position in the 13F portfolio as of Q3 2012 but it was reduced by over 40% in Q4 2012 to a still substantial 3.74% stake. The stake was further reduced by two-thirds in Q1 2013 at prices between $35 and $40. The pattern continued in Q2 2013 as it saw a further reduction of 22% at prices between $37.68 and $46.21. Last quarter saw almost the entire remaining position disposed of at prices between $45.50 and $50.50 and this quarter the position was finally eliminated. The position was established at prices between $30.15 and $35.02. Soros moved on after having profitably played the uptrend.Chevron Corporation (CVX) PUTS:  CVS Puts were a large leveraged short position for Soros. It was an insignificantly small 0.33% position in Q2 2013 but was increased to a fairly significant 2.56% position last quarter. The stake was eliminated this quarter but an even larger short position in the energy sector was established through XLE Puts (see above).Constellation Brands (STZ): The 1.38% of the US long portfolio position was reduced marginally in Q2 2013 and was reduced by ~45% last quarter at prices between $50 and $60. The remaining position was eliminated this quarter at prices between $57 and $72. The stock currently trades at $79.37. The original position was established in Q1 2013 at prices between $47.30 and $54.36.Johnson & Johnson (JNJ): The 1.20% of the US long portfolio stake was reduced by 50% last quarter at prices between $86 and $94.50. The original position was purchased in Q3 2012 at prices between $67.43 and $69.09 and since then only minor adjustments had been made. The position was eliminated this quarter at prices between $85.61 and $95.63. The stock currently trades at $92.76. Soros played the uptrend very profitably and has moved on.MeadWestvaco (MWV), Hertz Global (HTZ) & Calls, Baker Hughes (BHI), Cemex SAB de CV (CX), Spreadtrum (SPRD), and Yandex (YNDX): These are very small positions (less than 1% of the US long portfolio) that were eliminated this quarter. As the position sizes were very small, the activity does not indicate a change in bias. Some of these positions were established just last quarter - the trading is however very consistent with his very active trend-following style.Stake Increases:S&P 500 SPDR (SPY) PUTS: SPY Puts were increased by over 150% at prices between $165 and $185 this quarter - it is currently Soros’s largest 13F position by far at 11.12% of the US long portfolio. In Q1 2013, a 4.79% position was built at prices between $142 and $157. The following quarter saw the position increased by another 200% at prices between $154 and $168. Last quarter saw an about-turn, as around two-thirds of the position was eliminated at prices between $160 and $173. SPY currently trades at $184. The trade this quarter indicates an overall shift in bias to the short-side.DISH Network (DISH) & Calls: DISH was a minute 0.20% of the US long portfolio position as of Q1 2013. In Q2 2013, the stake was increased substantially to a 1.83% position at prices between $36 and $42.50. Last quarter saw a minor stake reduction. This quarter, the buying resumed as the stake was increased by ~45% at prices between $45 and $58. The stock currently trades at $56.90. It now accounts for 2.69% of the US long portfolio.EQT Corporation (EQT): EQT is a 1.90% position that was roughly doubled in Q4 2012 at prices between $56 and $63. In Q1 2013, the stake was increased by almost 50% at prices between $57 and $69. The original position was established in Q2 2012 at prices between $44 and $54.07. In Q2 2013, the position was reduced by ~20% at prices between $65 and $84 and last quarter saw another ~24% stake reduction at prices between $79.50 and $92.50. This quarter saw an about-turn as the position was increased by ~34% at prices between $81 and $91. The stock currently trades at $97.67.Energen Corporation (EGN): EGN has been in the portfolio since Q1 2013. Last quarter, the position was increased by just over 15% to a 1.26% of the US long portfolio position at prices between $52 and $77.50. This quarter saw another 50% stake increase at prices between $66 and $85. The stock currently trades at $75.59. The stock returned ~55% in 2013.General Motors (GM) & Calls: GM & Calls were a minutely small position last quarter. It was increased to a fairly significant 2.19% position this quarter at prices between $34 and $42. The stock currently trades at $35.95. The significant stake increase indicates a bullish bias. For investors attempting to follow Soros, GM is a good option to consider.Teva Pharmaceuticals (TEVA): TEVA is a large 3.66% of the US long portfolio position established last quarter at prices between $37.50 and $41.50. The position was increased by almost 200% this quarter at prices between $36.59 and $41.70. The stock currently trades at $44.19. TEVA has been in an extended slump due to “patent cliff” concerns and other issues - its ten-year stock performance stands at a depressing 33%. Soros aggressively building the position is an indication that he is sensing a turnaround in the company’s prospects. For investors attempting to follow Soros, TEVA is a good option to consider.Barrick Gold (ABX), Apple Inc. (AAPL), Caesars Entertainment (CZR), Cameco (CCJ), Pioneer Natural Resources (PXD), and YPF SA (YPF): These are small positions (1% to 2% of the US long portfolio) that were increased this quarter. Soros is building stakes anticipating uptrends in these businesses.American Tower (AMT), Churchill Downs (CHDN), Crown Castle (CCI), Loral Space & Commn. (LORL), Red Hat Inc. (RHAT), SBA Communications (SBAC), SemGroup (SEMG), SolarWinds (SWI), and Zoetic (ZTS) & Calls: These are very small positions (less than 1% of the US long portfolio) that were increased this quarter. As the position sizes are still very small, the activity does not indicate a clear bias.Stake Decreases:Charter Communications, Inc. (CHTR): The bulk of the CHTR stake was purchased in Q1 2012 and Q2 2012 at prices between $56.15 and $70.78. In Q1 2013, the position was increased by around 16% and the following quarter the stance reversed as the stake was reduced by ~20%. Last quarter saw further selling: ~14% stake reduction at prices between $120 and $136 and this quarter saw a minor stake reduction. The stock currently trades at around $129.35. The remaining position is still very significant at 1.67% of the US long portfolio. Soros is continuing to exit after having played the uptrend successfully.FedEx Corporation (FDX): FDX is a 1.98% of the US long portfolio position established last quarter at prices between $98 and $117. The stake was decreased by 14% this quarter at prices between $112 and $144. The stock currently trades at $133.92. The stock was in an uptrend and returned ~56% in 2013.Google Inc. (GOOG): GOOG is a good trading stock for Soros and he has previously done several roundtrips on it. The current 1.48% stake was first purchased in Q3 2012 at prices between $570.48 and $756.50 and was increased by close to 80% in Q1 2013 at prices between $700 and $840. Q2 2013 saw a 17.5% stake increase at prices between $765 and $916. Last quarter saw a turnaround, as ~60% of the position was eliminated at prices between $847 and $925 and this quarter saw another 6% trimming at prices between $853 and $1121. The stock currently trades at around $1205. Soros is harvesting gains and continuing to move on.Herbalife (HLF): HLF is a 2.14% of the US long portfolio position purchased in Q2 2013 at prices between $35 and $50. The stake was reduced by 36% this quarter at prices between $61 and $81. The stock currently trades at around $66.39. There is a lot of hedge fund activity with HLF - Pershing Square is short 20M shares while Carl Icahn is long ~17M shares.Liberty Global (LBTYA) (LBTYK): Liberty Global is a 2.11% of the US long portfolio position that was increased by ~75% in Q2 2013 as a result of the acquisition of Virgin Media (VMED) by Liberty Global - Soros held VMED shares that were replaced with Liberty Global shares and cash at an approximate ratio of 2:1 (stock vs. cash). Last quarter saw a 12% stake reduction and it was followed by a 5% stake reduction this quarter.Microsoft Corporation (MSFT): MSFT was a fairly large 4.63% of the US long portfolio stake established last quarter at prices between $31 and $36.50. It was reduced to a very small 0.85% of the US long portfolio position this quarter at prices between $33 and $39. The stock currently trades at $37.62.J C Penney (JCP) & Calls: JCP is a 1.08% of the US long portfolio position that was reduced by just over 30% this quarter at prices between $6.42 and $10.19. The position was first established in Q2 2013 at prices between $13.93 and $19.39. The stock currently trades at $6.14.  Pershing Square (Bill Ackman) established a large (17.7% of the business) activist stake in this name in 2010 at a cost-basis of around $25. But, Ackman resigned from JC Penney board on 8/12/2013 and disposed of his stake at $12.90 later that month. The share price has been in an extended downtrend. Other hedge funds have also taken positions on either side of this trade.Schlumberger Ltd. (SLB): SLB was a 2.41% of the US long portfolio position established last quarter at prices between $71.50 and $89. It was reduced to an insignificantly small 0.23% of the US long portfolio position this quarter at prices between $85.54 and $94.46. The stock currently trades at $90.45. Here again, Soros played the cycle by riding the uptrend in oil field services. SLB returned ~30% in 2013.Motorola Solutions Inc. (MSI), Netapp Inc. (NTAP), Mosaic Inc. (MOS), Abbvie (ABBV), Brocade Communications (BRCD), and CF Industries (CF): These are very small positions (less than 1% of the US long portfolio) that were reduced this quarter. As the stakes are too small, they do not indicate a clear bias.Kept Steady:Halliburton Co. (HAL): HAL is a 2.41% of the US long portfolio position established last quarter at prices between $41.50 and $50.50. The stock currently trades at $53.57.Adecoagro S A (AGRO): AGRO is a 1.78% of the US long portfolio position that was established prior to its IPO. The stock currently trades at around $8, well below the IPO price of $11. The position was marginally increased in Q2 2013 at prices between $6.05 and $7.95. For investors attempting to follow Soros, AGRO is a good option to consider for further research.Exar Corporation (EXAR): EXAR is a very small position that was left untouched this quarter.The spreadsheet below highlights Soros’s significant US long stock positions as of Q4 2013:"