"Tracking George Soros’s Portfolio – Q3 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 11/14/2013. Please visit our  for an idea on how his holdings have progressed over the years and our  highlighting the fund’s moves during Q2 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 decreased this quarter from $9.22B to $9.14B. The number of positions increased from 201 to 232. 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 four remained untouched during the quarter. Six of the larger positions that figured in the Q2 2013 report were eliminated this quarter and nine new positions were added. To learn about his distinct trading style and philosophy, .New stakes:Microsoft Corporation (MSFT): MSFT is a fairly large 4.63% of the US long portfolio established this quarter at prices between $31 and $36.50. The stock currently trades at $37.84. The large stake establishment indicates a bullish bias.Fedex Corporation (FDX): FDX is a 2.36% of the US long portfolio established this quarter at prices between $98 and $117. The stock currently trades at $139. The stock has been in an uptrend and has returned over 50% YTD.Halliburton Co. (HAL) & Schlumberger Ltd. (SLB): HAL is a 2.20% of the US long portfolio position established this quarter at prices between $41.50 and $50.50. The stock currently trades at $56.23. SLB is a 2.41% of the US long portfolio position established this quarter at prices between $71.50 and $89. The stock currently trades at $93. Here again, Soros is playing the cycle by riding the uptrend in oil field services. HAL is up over 60% YTD and SLB is up around 35% YTD.Teva Pharmaceuticals (TEVA): TEVA is a 1.49% of the US long portfolio position established this quarter at prices between $37.50 and $41.50. The stock currently trades at $38.28. 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 initiating 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.Hertz Global (HTZ) & Calls, Mosaic Inc. (MOS), Yandex (YNDX), and YPF SA (YPF): These are very small positions (less than 1% of the US long portfolio) established this quarter. As the position sizes are small, the activity does not indicate a clear bias.Stake Disposals:Acacia Research Corporation (ACTG): ACTG was a small 0.56% position as of last quarter. The stake disposal this quarter happened at prices between $21 and $26. It was reduced by 36% last quarter to a small 0.56% position at prices between $21.49 and $30.29. The bulk of the original stake was acquired in Q1 2012 at prices between $35.74 and $43.34. The stock currently trades at around $15 - this was a timely exit for Soros as the stock plunged in October following Q3 results.Delta Air Lines (DAL): DAL stake was reduced by 43% last quarter to a 1.05% position at prices between $14.31 and $18.79 and was disposed of this quarter at prices between $18.41 and $24. The position was acquired in Q3 2012 at prices between $8.56 and $11.12 and increased by around 50% in Q4 2012. Soros is moving on after playing the uptrend in airline majors.Shutterfly Inc. (SFLY), United-Continental Holdings (UAL), and NRG Resources (NRG): These were very small positions (less than ~1% of the US long portfolio) that were disposed of this quarter. As the position sizes were small, the activity does not indicate a clear bias.IShares MSCI Emerging Market (EEM) Puts & IShares Russell 2000 (IWM) Puts: These leveraged short positions were disposed of this quarter. EEM puts were a 1.55% position while the IWM puts were at 1.09%. The activity indicates a mild shift in bias away from the short-side.Stake Increases:Chevron Corporation (CVX) PUTS:  CVS Puts are a fairly large leveraged short position for Soros. It was an insignificantly small 0.33% position last quarter but was increased to a fairly significant 2.56% position this quarter. The large position indicates a clear bearish bias.Energen Corporation (EGN): EGN has been in the portfolio since Q1 2013. This 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. The stock currently trades at $76. The stock has returned over 75% YTD.Baker Hughes (BHI), CF Industries (CF), and Churchill Downs (CHDN): These are very small positions (less than 1% of the US long portfolio) that were increased this quarter. But, as the position sizes are still very small, they do not indicate a clear bias.Stake Decreases:J C Penney (JCP) & Calls: JCP is a 1.93% of the US long portfolio position that was reduced marginally this quarter. The position was first established last quarter at prices between $13.93 and $19.39. The stock currently trades at $9.  The relatively large stake establishment indicates a clear bullish bias. 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 August 12th 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.S&P 500 SPDR (SPY) PUTS: SPY PUTS was increased by a whopping 250% to a 4.79% position in Q1 2013 at prices between $142 and $157. Last quarter, the position was increased by another 200% to a huge 13.54% stake at prices between $154 and $168. This quarter saw an about-turn, as ~two-thirds of the position was eliminated at prices between $160 and $173. SPY currently trades at $180. The trade indicates a shift in bias from the short-side.Google Inc. (GOOG): GOOG is a good trading stock for Soros and he has previously done several roundtrips on it. The current 1.58% 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. Last quarter saw a 17.5% stake increase at prices between $765 and $916. This quarter saw a turnaround, as ~60% of the position was eliminated at prices between $847 and $925. The stock currently trades at around $1034. Soros is harvesting gains and moving on.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 last quarter as it saw a further reduction of 22% at prices between $37.68 and $46.21. This quarter saw almost the entire remaining position disposed of at prices between $45.50 and $50.50. The position was established at prices between $30.15 and $35.02. Soros is moving on after having profitably played the uptrend.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 last quarter the stance reversed as the stake was reduced by ~20%. This quarter saw further selling - ~14% stake reduction at prices between $120 and $136. The stock currently trades at around $129. The remaining stake is still very significant at 2.28% of the US long portfolio. Here again, Soros is starting to exit after having played the uptrend successfully.Constellation Brands (STZ): The 1.38% of the US long portfolio position was reduced marginally last quarter and was reduced by ~45% this quarter at prices between $50 and $60. The original position was established in Q1 2013 at prices between $47.30 and $54.36. The stock currently trades at $69.DISH Network (DISH): DISH was a minute 0.20% of the US long portfolio position as of Q1 2013. It was increased substantially last quarter to a 1.83% stake at prices between $36 and $42.50. This quarter saw minor selling at prices between $41.50 and $48. The stock currently trades at $51.EQT Corporation (EQT): EQT is a 1.80% 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. Last quarter, the position was reduced by ~20% at prices between $65 and $84 and this quarter saw another ~24% stake reduction at prices between $79.50 and $92.50. The stock currently trades at $85.Johnson & Johnson (JNJ): The 1.20% of the US long portfolio stake was reduced by 50% this 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 stock currently trades at just over $94. Soros is harvesting large gains from this position.Liberty Global (LBTYA) (LBTYK): Liberty Global is a 2.55% of the US long portfolio position that was increased by ~75% last quarter 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). This quarter saw a 12% stake reduction.Caesers Entertainment (CZR), Motorola Solutions Inc. (MSI), Netapp Inc. (NTAP), and Pioneer Natural Resources (PXD): These are small positions (1% to 2% of the US long portfolio) that were marginally reduced this quarter. As the activity was minor, it does not indicate a shift in bias.Abbvie (ABBV), Brocade Communications (BRCD), Cameco (CCJ), Cemex SAB de CV (CX), Exar Corporation (EXAR), Macys Inc. (M), & Zoetis (ZTS): These are very small positions (less than 1% of the US long portfolio) that were reduced this quarter. As the position sizes are small, the activity does not indicate a clear bias.Kept Steady:Herbalife (HLF): HLF is a 3.84% of the US long portfolio position purchased last quarter at prices between $35 and $50. The stock currently trades at around $69. Soros is playing the uptrend with this name. There is a lot of hedge fund activity with HLF - Pershing Square is short 20M shares while Carl Icahn is long ~17M shares.Adecoagro S A (AGRO): AGRO is a 2.10% 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 last quarter at prices between $6.05 and $7.95. For investors attempting to follow Soros, AGRO is a good option to consider for further research.MeadWestvaco (MWV) & Spreadtrum (SPRD): These are very small (less than 1% of the US long portfolio) stakes that were kept steady this quarter. As the position sizes are very small, they do not indicate a clear bias.The spreadsheet below highlights Soros’s significant US long stock positions as of Q3 2013:"