"Tracking George Soros’s Portfolio – Q2 2015 Update"
"Soros' 13F portfolio increased from $10.16B to $10.75B this quarter. The number of positions increased from 225 to 263.The SPY Puts stake was decreased significantly to 5.59% and a large 16.95% position in SPY Calls was established in the quarter.Facebook, Monsanto and NextEra Energy stakes were substantially increased this quarter. Time Warner Cable is a brand new top-three stake.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 08/14/2015. Please visit our  for an idea on his investment philosophy and our  highlighting the fund’s moves during Q1 2015.Soros Fund Management invests globally and the long positions in the US market reported in the 13F filings represent ~20% of the overall portfolio. The 13F portfolio increased ~5.74% this quarter from $10.16B to $10.75B. The number of positions saw a ~17% increase from 225 to 263 - last quarter had also seen a ~21% increase from 186 to 225. Very small stock positions and large debt holdings together account for over 30% 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 positions. The top-three individual stock positions are YPF SA, Time Warner Cable and Dow Chemical.To learn about Soros’ distinct trading style and philosophy, check out his “” and other works.New stakes:S&P 500 SPDR (SPY) Calls & Puts: The SPY position has wavered over the years. Recent activity follows: In Q2 2014, Puts stake was increased significantly to a huge 16.65% portfolio position. The following quarter saw a 24% reduction when the shares traded between $191 and $202 and in Q4 2014 most of the remaining stake was sold when the shares traded between $186 and $209. Last quarter had seen an about-turn as the position was rebuilt back up to a large ~11% portfolio stake when the shares traded between $199 and $212. This quarter, the Puts were sold down while simultaneously adding a huge position in the Calls: The current net position is a long stake in SPY at 11.36% of the portfolio.Note: The activity in SPY on its own does not indicate a clear bias as Soros is known to use this ETF to hedge other parts of his portfolio.Time Warner Cable (TWC): TWC is Soros’s second-largest individual stock position at 2.41% of the US long portfolio. It was established this quarter at prices between $149 and $184. The stock currently trades at $186.Note: Charter Communications (CHTR) is set to acquire TWC in a $195 cash-and-stock deal ($100 cash).Alcoa Inc. (AA), iShares MSCI Emerging (EEM) Calls, iShares China Large Cap (FXI) Calls, NRG Energy (NRG), and Charles Schwab (SCHW): These are very small (less than ~1% of the portfolio each) stakes established this quarter.Note: NRG had seen a recent presence in the portfolio: a very small 0.50% of the portfolio stake was eliminated last quarter. Also, iShares FTSE/Xinhua China 25 Index (FXI) was a recent presence: It was a fairly large 2.29% of the portfolio stake entered between $37.46 and $41.98 and exited last quarter between $40.77 and $44.74.Stake Disposals:iShares Russell 2000 ETF (IWM) Puts: These Puts (~1.74% portfolio stake) were purchased last quarter when IWM price-per-share varied between $115 and $126 and sold this quarter when IWM price-per-share varied between $121 and $129. It currently trades at $120.Note: Soros had a huge ~20% of the portfolio stake in these puts in Q3 2011. That position was sold down the following quarter.Salix Pharmaceuticals (SLXP): SLXP was a minutely small 0.34% of the portfolio stake that was reduced significantly last quarter. The stake got eliminated this quarter as Valeant Pharmaceuticals (VRX) acquired SLXP in a $173 per share cash-deal that closed April 1.Stake Increases:Cypress Semiconductor (CY) & Calls: CY position was increased by ~400% last quarter and another ~19% this quarter. The increase this quarter happened at prices between $11.56 and $14.14 and the stock currently trades at $10.20. The stake is now very significant at 1.85% of the portfolio.Note: The vast majority of the 400% increase in Q1 2015 was due to the acquisition of Spansion by Cypress that closed in March - Spansion shareholders received Cypress stock in the ratio 1:2.457. Soros had a 3.55M share position in Spansion.DISH Network (DISH) & Calls and DIRECTV (DTV): 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. The position was sold down since. This quarter saw a ~6% increase at prices between $66 and $76. The stake is now at 0.82% and the stock is at $66.31. The DTV position was increased by ~30% this quarter (~0.60% portfolio stake) at prices between $85 and $94.Note: AT&T (T) acquired DTV in a cash-and-stock deal worth ~$95 per share that closed in July.Dow Chemical (DOW): DOW was a very small 0.32% position as of Q2 2014. In Q3 2014, the position was increased by just over 150% to a 1.14% stake at prices between $51 and $54.80 and the following quarter saw a further 78% increase at prices between $42.71 and $52.84. Last quarter saw an about-turn: ~11% reduction at prices between $43.03 and $49.85. This quarter saw a ~5% increase at prices between $47.90 and $53.59. It is now a top-three individual stock position at 2.31% of the US long portfolio. The stock currently trades at $44.89.Note: Dan Loeb (Third Point) established a huge activist stake in Dow Chemical in Q4 2013 at around the mid-40s price-range.Endo International plc (ENDP): ENDP is a fairly large 1.70% of the portfolio positon established in Q4 2014 at prices between $60.19 and $73.37 and increased by ~27% last quarter at prices between $71.97 and $92.37. This quarter saw a marginal further increase. The stock currently trades at $84.82.Facebook Inc. (FB): FB was a minutely small ~0.10% portfolio stake as of last quarter. It was increased to a fairly large 2.07% (top-five) of the portfolio position this quarter at prices between $77.46 and $88.86. The stock currently trades at $94.42.Note: FB had a previous presence in the portfolio: Around ~1.8M shares were purchased in Q2 2014 at prices between $56 and $65. Most of it was disposed of the following quarter at prices between $66 and $79.Vipshop Holdings (VIPS): VIPS is a 0.98% of the US long portfolio position. The bulk was purchased in Q1 2014 at around the $10 cost-basis. The stake saw a ~25% increase this quarter at prices between $21.54 and $30. The stock currently trades at $20.50.JDS Uniphase (JDSU), Lattice Semiconductor (LSCC), Monsanto (MON), NextEra Energy Inc. (NEE), Qunar Cayman (QUNR), and Western Refining (WNR): These are very small (less than ~1.25% of the US long portfolio) positions that were increased this quarter. The position sizes are still too small to have much of a portfolio impact.Stake Decreases:Alibaba Group (BABA): BABA was Soros’ largest 13F individual stock position at ~3.64% as of last quarter. It was established in Q3 2014 at prices between $87 and $94. This quarter, the position was almost sold out at prices between $79.54 and $93.88. The stock currently trades at $74.73.American Airlines (AAL): The original minutely small position was increased by over 150% in Q2 2014 at prices between $33.37 and $44.55. It was built-up to a 1.83% of the 13F portfolio stake by Q3 2014 at prices between $35 and $44. Q4 2014 saw an about-turn as the position was reduced by ~53% at prices between $28.58 and $53.63.  The pattern continued last quarter with a ~53% reduction at prices between $46.53 and $55.76 and another ~19% reduction this quarter at prices between $39.48 and $52.78. The stock currently trades at $42.88.EQT Corporation (EQT): The original position in EQT was established in Q2 2012 at prices between $44 and $54.07. The stake has wavered since. In Q3 2014, there was a ~19% increase at prices between $91 and $107 and the following quarter saw an additional 44% increase at prices between $75.38 and $99.75. Last quarter saw a ~37% reduction at prices between $72.53 and $83.43 and this quarter saw a further ~58% reduction at prices between $81 and $92. The stock currently trades at $78.24 and the remaining stake is at 0.58% of the portfolio.Energen Corporation (EGN): EGN has been in the portfolio since Q1 2013. In Q3 2013, the position was increased by just over 15% at prices between $52 and $77.50. Q4 2013 saw another 50% increase at prices between $66 and $85. Last quarter saw a ~37% reduction at prices between $59.05 and $70.54. This quarter, the stake was almost sold out at prices between $66 and $76. The selling was very timely as the stock currently trades well below that range at $54.19.Essent Group (ESNT): ESNT is a 1.14% of the US long portfolio stake. Q4 2014 saw a ~21% reduction at prices between $21.30 and $25.70 and that was followed with a ~25% reduction this quarter at prices between $23.64 and $27.85. The stock currently trades at $27.96.General Motors (GM) & Calls: GM & Calls were a minutely small position in Q3 2013. It was increased to a fairly significant 2.19% position in Q4 2013 at prices between $34 and $42. In Q1 2014, the stake was reduced by ~46% at prices between $34 and $41. Last three quarters had seen a combined ~65% increase at prices between $32.62 and $38.87. This quarter saw an about turn: ~80% reduction at prices between $33.23 and $37.50. The stock currently trades at $31.50 and the position is at 0.35%.Herbalife (HLF): HLF was a 2.30% of the US long portfolio position as of Q2 2014. It was first purchased in Q2 2013 at prices between $35 and $50 and has wavered since. In Q3 2014, the position was sold down to a 0.62% stake at prices between $40.21 and $67.77. Q4 2014 saw an about-turn as the position was increased by ~80% at prices between $37.36 and $55.90. This quarter, the pattern reversed again: ~42% reduction at prices between $40 and $55. The stock currently trades at $59.43 and the stake is now at 1.01% of the US long portfolio. HLF is a very volatile stock and Soros is playing the trends.Level 3 Communications (LVLT): Most of the 1.02% LVLT stake was purchased in Q2 & Q3 2014 at prices between $36.37 and $47.50. Q4 2014 saw a ~28% reduction at prices between $38.05 and $50 and last quarter saw a further ~11% reduction at prices between $47.02 and $55.46. This quarter saw further selling: ~40% reduction at prices between $52 and $57. The stock currently trades at $48.58.LyondellBasell Industries (LYB): LYB is a 1.72% of the US long portfolio stake established in Q4 2014 at prices between $70.61 and $109 and reduced by ~27% last quarter at prices between $74.36 and $91.55. This quarter saw a further ~15% reduction at prices between $87.80 and $106. The stock currently trades at $87.11.YPF SA (YPF): YPF is the largest equity long position at 2.81% of the US long portfolio. The original position was a small 0.87% stake established in Q3 2013 at prices between $14.80 and $21.57. It had since been consistently bought every quarter at prices between $20 and $36. Q4 2014 saw a ~13% reduction at prices between $22.50 and $37 and this quarter saw a ~6% further reduction at prices between $26.18 and $31.58. The stock currently trades at $24.11.Zoetis (ZTS): ZTS is a 1.23% of the US long portfolio stake. The bulk of the position is from Q4 2013 and Q1 2014 when the position was increased by ~160% at an average price of ~$32. This quarter saw a one-third reduction at prices between $44 and $55. The stock currently trades at $47.47.Note: There is recent activist involvement in ZTS. Bill Ackman has built a ~41.82M share (~8.5% of business) stake and has acquired a board seat.Allergan plc (AGN) previously Actavis plc, Baidu Inc. (BIDU), California Resources Corp. (CRC), eBay Inc. (EBAY), LendingClub (LC), Mack Cali Realty (CLI), Motorola Solutions Inc. (MSI), New Oriental Education & Tech. (EDU), Nice Systems (NICE), Pioneer Natural Resources (PXD), Noble Energy (NBL), Polycom Inc. (PLCM), and United Continental Holdings (UAL): These are very small (less than ~1% of the US long portfolio) positions that were further decreased this quarter. The position sizes are too small to have much of a portfolio impact.Kept Steady:Adecoagro S A (AGRO): AGRO is a 2.22% of the US long portfolio position that was established prior to its IPO. The stock currently trades at around $8.35, 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.Yahoo Inc. (YHOO): YHOO is a small 0.48% of the US long portfolio stake established in Q3 2014 at prices between $33 and $43. It was sold down by ~63% in the following quarter at prices between $37.82 and $52.37 and another ~29% last quarter at prices between $42.50 and $50.51. The stock currently trades at $36.24.Allegion PLC (ALLE), D R Horton Inc. (DHI) & Calls, Kraft-Heinz previously Kraft Foods Group (HNZ), Lennar Corp. (LEN) & Calls, Loral Space & Communications (LORL), Mondelez Intl. (MDLZ), Pulte Group Inc. (PHM), and Yum Brands (YUM): These are very small (less than ~1% of the US long portfolio each) positions that were kept steady this quarter.Although the relative sizes are very small, it is significant that Soros has ownership stakes in the following businesses: Exa Corp (EXA) - ~9% and MaxLinear (MXL) - ~5%.The spreadsheet below highlights Soros’s significant US long stock positions as of Q2 2015:"