"Tracking George Soros’s Portfolio – Q3 2017 Update"
"Soros' 13F portfolio value decreased from $5.62B to $4.20B this quarter. The number of positions increased from 203 to 227.They added Comcast while increasing Altaba & Time Warner.The large short position in Powershares QQQ ETF thru Puts established last quarter was dropped.  Also, the SPY ETF Puts and the Russell 2000 ETF Puts positions were both reduced.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 11/14/2017. Please visit our  for an idea on his investment philosophy and our  for the fund’s moves during Q2 2017.Soros Fund Management invests globally and the long positions in the US market reported in the 13F filings represent ~15% of the overall portfolio. The 13F portfolio value decreased ~25% this quarter from $5.62B to $4.02B. The number of positions increased from 203 to 227. Very small stock positions and large debt holdings together account for over ~40% of the 13F holdings. The US long investments are diversified with a large number of very small equity positions, a small number of large equity positions, and a few large debt holdings. As the small positions (<0.5%) do not indicate a clear bias, the focus of this article is on the larger equity positions. The top three individual stocks held are Liberty Broadband, Altaba, and Caesars Acquisition.To learn about Soros’ distinct trading style and philosophy, check out his “” and other works.New stakes:Comcast Corp. (CMCSA) & Calls and Campbell Soup (CPB): These two are the new positions purchased this quarter. CMCSA is a 1.45% portfolio position purchased at prices between $37 and $42 and the stock currently trades near the low end of that range at $37.07. CPB is a small 0.64% stake established at prices between $45 and $54 and it now goes for $48.32.Stake Disposals:Powershares QQQ (QQQ) Puts: Last quarter, a huge (~18% of portfolio – largest stake) short position in QQQ thru Puts was established as the underlying traded between $130 and $144. The entire stake was disposed this quarter as the underlying traded between $136 and $146. It now goes for $154.50.Note: The disposal may not indicate a clear shift in bias as Soros is known to use ETF Puts/Calls to hedge parts of his portfolio.MGM Resorts (MGM) Puts: The 0.75% short position in MGM thru Puts was established last quarter as the underlying traded between $27 and $34 and disposed this quarter as MGM traded between $30 and $34. The stock currently trades at $33.Note: MGM is a good trading stock for Soros and it has seen several previous roundtrips in the portfolio over the years.Reynolds American: RAI was a ~0.70% stake as of last quarter. The bulk of it was purchased in Q1 2017 at prices between $55 and $63. Reynolds American merged with British American Tobacco (BTI) in a cash-and-stock deal ($29.44 cash and 0.5260 BTI shares for each RAI held) that closed in July.Williams Companies (WMB): WMB was a 0.84% of the 13F portfolio as of last quarter. It was established in Q3 2016 at prices between $20 and $31. Q4 2016 saw a ~25% selling at prices between $28 and $32 while there was a ~15% increase in the following quarter at prices between $28 and $32.50. Last quarter saw a ~43% selling at prices between $27.80 and $30.80 and the disposal this quarter was at prices between $29 and $32. The stock currently trades at $27.02.Stake Increases:Altaba Inc. (AABA) previously Yahoo: AABA is a large (top three) 4.42% portfolio positon established last quarter at prices between $46 and $56 and increased by ~10% this quarter at prices between $54.50 and $67.50. The stock is now well above that range at $70.75.Time Warner (TWX): The 2.50% TWX position was established in Q4 2016 at prices between $78.50 and $97 and increased by ~30% last quarter at prices between $97 and $100. There was another ~70% this quarter at prices between $99 and $103. The stock is now at $88.01. For investors attempting to follow Soros, TWX is a good option to consider for further research.Note: Last October, AT&T (T) agreed to acquire Time Warner in a cash-and-stock deal valued at ~$107.50 (half in cash).TiVo Corporation (TIVO) previously Rovi: TiVo is a 2.43% of the portfolio stake purchased in Q2 2016 at prices between $15 and $20.50. Q1 2017 saw a ~10% increase at prices between $17.90 and $21 and that was followed with a 15% increase last quarter at prices between $16 and $20. The stock is now at $17.70. There was a minor ~4% increase this quarter.Note: ROVI has had a previous roundtrip: a small 0.65% portfolio stake was almost eliminated in Q4 2015 at prices between $8.69 and $17.71 and the remnant position was disposed the following quarter.EQT Corporation (EQT) & Calls: EQT is a ~2% portfolio stake purchased last quarter at prices between $50.50 and $64 and increased by ~20% this quarter at prices between $58.50 and $67. It currently goes for $59.30.Mondelez (MDLZ): MDLZ was a very small 0.34% portfolio stake as of Q3 2016. Q4 2016 saw a ~50% increase at prices between $40.50 and $46 and that was followed with another ~170% increase in Q1 2017 at prices between $42.50 and $45.50. There was a ~30% further increase this quarter at prices between $40 and $44. The stock is now at $42.19 and the stake is at 1.69% of the portfolio.Kraft Heinz (KHC): The majority of the 1.26% KHC stake was built over the last two quarters at prices between $81 and $94. The stock currently trades below that range at $79.68.Viavi Solutions (VIAV) and Edgewell Personal Care (EPC): These two are now fairly significant stakes at 1.15% of the portfolio each. VIAV was a minutely small position in Q1 2017. Last quarter saw a ~9x stake increase and that was followed with another ~40% increase this quarter at prices between $9 and $11.75. The stock is now below that range at $8.77. The EPC position saw a ~160% increase over the last two quarters at prices between $69.50 and $77.50 and it is currently at $59.11. For investors attempting to follow Soros, VIAV and EPC are good options to consider for further research.Allot Communications (ALLT), Crown Castle Intl. (CCI), Colgate Palmolive (CL), Conduent (CNDT),  Exa Corp. (EXA), Kellogg Co. (K), SBA Communications (SBAC), Sigma Designs (SIGM), Take Two Interactive (TTWO), and Valeant Pharmaceuticals (VRX) Puts: These are very small (less than ~1% of the portfolio each) stakes that saw increases this quarter.Notes: a) Soros has significant ownership stakes in the following businesses: ~12% of Exa, ~13% of Sigma Designs, and ~16% of Allot Communications, b) Conduent is a Xerox (XRX) spinoff that started trading last December, c) SBA Communications did an REIT conversion transaction in January - the deal was structured as a merger with its REIT subsidiary. The stock has returned ~55% YTD, and d) Take Two has returned ~140% YTD.Stake Decreases:iShares Russell 2000 (IWM) PUTS: The large 4.19% of portfolio IWM short position has wavered over the years. Recent activity follow: a large 7.65% stake was built in Q4 2016 as the underlying traded between $115 and $138. There was another roughly one-third increase in the following quarter as IWM traded between $134 and $140. Last quarter saw a ~25% reduction as IWM traded between $134 and $142 and that was followed with a ~50% selling this quarter as IWM traded between $135 and $148. It currently goes for ~$148.S&P 500 SPDR (SPY) Puts & Calls: The positioning thru SPY Puts & Calls varies widely almost every quarter. As of last quarter, the Puts stake was much larger and so the overall short positioning was at ~7% of the portfolio. That stake was reduced by ~90% this quarter. On the other hand, the Calls showed a modest ~3% trimming. Overall, the Puts & Calls are now sized the same (1.2% of the portfolio) offsetting each other.Note: The index ETF option positions may not indicate a clear shift in bias as Soros is known to use such Puts/Calls to hedge parts of his portfolio.Churchill Downs (CHDN): CHDN is a long-term ~1% portfolio stake that was kept steady in the last 2+ years. The stock price has almost doubled during that period. This quarter saw an about turn: ~45% selling at prices between $180 and $208. It currently trades at $217. Soros is harvesting gains.Zoetis (ZTS): ZTS is a ~1% of the US long portfolio stake. The bulk of the position is from Q4 2013 and Q1 2014 when the stake was increased by ~160% at ~$32. Q1 2016 saw a ~30% reduction at prices between $39 and $48 and that was followed with a ~45% selling the following quarter at prices between $44 and $49. There was a one-third reduction in Q3 2016 at prices between $47.50 and $52.50. The stock currently trades at $70.41. There was a ~15% trimming over the last two quarters.Facebook Inc. (FB) & Calls: FB is now a minutely small 0.44% portfolio stake. The original position was from Q4 2016 at prices between $115 and $133. The stake saw a ~25% selling last quarter at prices between $139 and $155 and that was followed with another ~75% selling this quarter at prices between $148 and $174. The stock is now at $180.Note: FB is a good trading stock for Soros and has seen several previous roundtrips. The most recent trading pattern follow: Q2 2015 saw a huge build-up to a ~2% portfolio stake at prices between $77.50 and $89. There was a ~30% reduction the following quarter at prices between $82 and $98.50 and that was followed with a ~55% reduction next quarter at prices between $90 and $109. Q1 2016 saw a further ~46% reduction at prices between $94 and $116 and the elimination the following quarter was at prices between $109 and $121.PayPal Holdings (PYPL): PYPL is a 0.44% of the portfolio position established in Q3 2015 as a result of the spinoff of PayPal from eBay. eBay shareholders received one share of PayPal for each share held. Q4 2015 saw a one-third reduction at prices between $31 and $38 and that was followed with another ~55% reduction the following quarter at prices between $31.20 and $41.32. Q2 2016 saw another ~40% reduction at prices between $34 and $40.50. PYPL currently trades at $77.70. There was a ~60% selling this quarter at prices between $53 and $65. Soros is harvesting huge gains.Adtalem Global Education (ATGE) previously DeVry, MakeMyTrip (MMYT), Model N Inc. (MODN), and Nomad Foods (NOMD): These are very small (less than ~0.7% of the portfolio each) stakes that saw reductions this quarter.Note: Soros controls ~10% of MODN.Kept Steady:Liberty Broadband (LBRDK): LBRDK is the largest individual stock position by far at ~18% of the portfolio. The stake was established in Q2 2016 at prices between $55 and $60.50. The stock is now well above that range at $89.74.NXP Semiconductors (NXPI): The ~1% NXPI position saw a ~80% increase in Q1 2017 at prices between $96 and $104 and that was followed with a ~11% increase last quarter. It is now at $115.Note: NXP Semiconductors is merging with Qualcomm (QCOM) in a $110 per share all-cash deal.Caesars Acquisition and Caesars Entertainment (CZR): These two positions were kept steady this quarter. Combined, the stake is at ~4% of the portfolio. Last month, Caesars Entertainment combined with Caesars Acquisition in a merger. The terms called for Caesars Acquisition shareholders to receive 1.625 shares of CZR for each share held. The two positions were first purchased in 2013.Although the relative sizes are very small, it is significant that Soros has significant ownership stakes in the following businesses: Exfo Inc. (EXFO), and Key Energy Services (KEG). Regulatory filings since the quarter ended also show them owning 2.47M shares (~9% of the business) of Overstock (OSTK).The spreadsheet below highlights Soros’s significantly large US long stock positions as of Q3 2017:Regulatory Filing thru 8/16/2017: 13G/A – 8/4/2017 – EXFO – 2.3M shares – 9.99%. Form 4 & 4A – 7/11, 7,6/2017, 6/30/2017, 6/9/2017 – SIGM – ~45K share @ ~$5.6 & ~120K @ ~$5.7 & 293K @ ~$5.85, 82K @ ~$5.85,  400K @ ~$5.75 – 5.03M shares total."