"Tracking George Soros’s Portfolio – Q4 2014 Update"
"Soros' 13F portfolio decreased ~30% from $13.40B to $9.16B this quarter. The number of positions decreased from 266 to 186.The huge SPY PUTS stake was reduced by ~90% this quarter to a very small ~2% of the 13F portfolio.A ~2.5% stake in LyondellBasell was established this quarter. Alibaba Group Holdings is the largest individual stock position at ~5%.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 02/18/2015. Please visit our  for an idea on how his holdings have progressed over the years and our  highlighting the fund’s moves during Q3 2014.Soros Fund Management invests globally and the long positions in the US market reported in the 13F filings represent only ~20% of the overall portfolio. The 13F portfolio decreased ~30% this quarter from $13.40B to $9.16B. The number of positions also saw a ~30% drop from 266 to 186 - last quarter also saw a large drop from 363 to 266. Very small stock positions and large debt holdings together account for over 33% 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.Consistent with Soros’s active trading style, among his larger positions, just six remained untouched during the quarter. The top-three individual stock positions are Alibaba Group Holdings, YPF SA, and Teva Pharmaceutical.To learn about his distinct trading style and philosophy, check out his “” and other works.New stakes:LyondellBasell Industries (LYB): LYB is a fairly large 2.46% of the US long portfolio stake established this quarter at prices between $70.61 and $109. The stock currently trades at $89.49. The stock fell around ~30% in the quarter but has been in an uptrend since, rising ~13% so far this year.iShares China Large Cap (FXI) Calls: This is a 2.29% of the US long portfolio position established this quarter at prices between $37.46 and $41.98. The stock currently trades at $43.10. FXI has risen ~15% from the lows reached in October 2014.SPDR Utils (XLU) Puts, Endo International plc (ENDP), LendingClub (LC), & Allergan Inc. (AGN): These are small positions (less than 1.5% of the portfolio each) established this quarter. Utilities were one of the top-performing sectors in the US market in 2014 and Soros is anticipating a reversal - XLU is down ~2% so far this year. ENDP is a 1.38% of the portfolio positon established at prices between $60.19 and $73.37 and the stock currently trades well outside that range at $85.21. LC is a 1.24% of the portfolio stake established following the IPO on December 10, 2014 and the stock price has not budged much since. The 1.15% AGN position was purchased at prices between $177 and $214 and the stock currently trades at around $230.Realogy Holdings (RLGY), Salix Pharmaceuticals (SLXP), and Yum Brands (YUM): These are very small stakes (~0.5% of the portfolio each) established this quarter.Stake Disposals:iShares MSCI Emerging ETF (EEM) Puts: EEM Puts  at 6.98% of the portfolio was the second-largest 13F position after SPY Puts last quarter. The vast majority of the stake was purchased in Q2 2014 when the share price traded between $41.56 and $45.85. The entire position was eliminated this quarter when EEM share price varied between $37.73 and $42.44. The ETF currently trades at $40.58. The activity indicates a clear shift in bias away from the short side in the emerging market equities area.Apple Inc. (AAPL): AAPL position was reduced from 1.38% to 0.47% of the US long portfolio in Q1 2014. It was built back up to 1.28% of the portfolio in Q2 2014 at prices between $74 and $94. Last quarter saw a 38% reduction at prices between $92.93 and $103. The stake elimination this quarter was at prices between $96.26 and $119. The stock currently trades at around $129.Microsoft Corporation (MSFT): MSFT was a fairly large 4.63% of the US long portfolio stake established in Q3 2013 at prices between $31 and $36.50. It was reduced to a small 0.85% of the US long portfolio position in Q4 2013 at prices between $33 and $39. Q1 2014 saw further selling as the position was almost eliminated at prices between $35 and $41. Q2 2014 saw an about-turn as the stake was increased by over 400% to a still small 0.70% of the portfolio stake at prices between $39 and $42. Last quarter saw a 31% reduction at prices between $41.67 and $47.52 and the remaining stake was eliminated this quarter at prices between $42.74 and $49.61. The stock currently trades at $43.53.Tibco Software (TIBX): The position was built up to a 1.20% of the portfolio stake as of last quarter. It was purchased at prices between $18.84 and $23.65. Vista Equity Partners agreed to acquire TIBX at $24 per share cash and that transaction closed on December 5, 2014.Exxon Mobil (XOM) Puts, iShare Russell 2000 ETF (IWM) PUTS, & Powershares QQQ (QQQ) Puts: These three were minor ~0.50% of the portfolio stakes each as of last quarter. They were all eliminated this quarter. XOM traded between $86.41 and $96.81 during the quarter and it currently trades at $91.01. IWM share price varied between $104 and $121 during the quarter and it is currently at $122. QQQ traded in the $91.79 to $106 price-range during the quarter and it currently trades at $107.Note: The last time Soros had a significantly large short position in IWM through put options was in 2011 - the nominal size of that position peaked at almost 30% of the entire portfolio in Q3 2011 - most of that was liquidated in Q1 2012.Abbvie Inc. (ABBV), American International Group (AIG), Centerpoint Energy (CNP), Citrix Systems (CTXS), Intel Corporation (INTC), Leucadia National (LUK), and Stryker Corporation (SYK), : These are very small (less than ~1% of the US long portfolio) positions that were disposed of this quarter.Stake Increases:Dow Chemical (DOW): DOW was a very small 0.32% position as of Q2 2014. Last quarter, the position was increased by just over 150% to a 1.14% stake at prices between $51 and $54.80 and this quarter saw a further 78% increase at prices between $42.71 and $52.84. The stock currently trades at $49.41.Note: Dan Loeb established a huge activist stake in Dow Chemical in Q4 2013 at around the mid-40s price-range. ~24% of the stake was sold this quarter but he still holds a large ~9% of the portfolio stake.EQT Corporation (EQT): The original position in EQT was established in Q2 2012 at prices between $44 and $54.07. It was roughly doubled in Q4 2012 at prices between $56 and $63. In Q1 2013, the stake was again increased by 50% at prices between $57 and $69. By Q3 2013, the position was reduced by over one-third at prices between $65 and $93. Q4 2013 saw an about-turn as the position was increased by ~34% at prices between $81 and $91. The pattern reversed again in Q2 2014 - one-third reduction at prices between $97 and $110. Last quarter, the zigzag trading pattern continued with a ~19% increase at prices between $91 and $107 and this quarter saw an additional 44% increase at prices between $75.38 and $99.75. The stock currently trades at $81.10 and the stake is at 2.38% 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 four quarters saw relatively minor activity and the stake is currently at 1.38%. The stock currently trades at $68.94. It returned ~42% in 2013 and is flat since.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 position was reduced by around 46% at prices between $34 and $41. Last three quarters have seen a combined stake increase of ~44% at prices between $29.69 and $37.97. The stock currently trades at $37.19 and the stake is at 1.87%.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. The stake was reduced by 36% in Q4 2013 at prices between $61 and $81. Q1 2014 saw a 53% increase at prices between $50 and $82. Last quarter the pattern reversed as the position was sold down to a 0.62% stake at prices between $40.21 and $67.77 and this quarter the remaining stake was almost eliminated at prices between $37.16 and $55.90. The stock currently trades at $33.42.Zoetis (ZTS): ZTS is a 1.93% of the US long portfolio positon that was increased marginally this quarter. The bulk of the stake is from Q4 2013 and Q1 2014 when the position was increased by ~160% at an average price of ~$32. The stock currently trades at $45.85.Note: There is recent activist involvement in ZTS. Bill Ackman purchased ~41.6M shares (8.3% of business) and has acquired a board seat.Actavis plc (ACT), Ally Financial (ALLY), Baidu Inc. (BIDU), eBay Inc. (EBAY), Mondelez Intl. (MDLZ), NRG Energy (NRG) & Calls, Pioneer Natural Resources (PXD), Spansion Inc. (CODE), United Continental Holdings (UAL), and Vipshop Holdings (VIPS): These are very small (less than ~0.1% of the US long portfolio each) positions that were increased this quarter. The position sizes are still too small to have much of a portfolio impact.Stake Decreases: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 last quarter at prices between $35 and $44. This quarter saw an about-turn as the position was reduced by ~53% at prices between $28.58 and $53.63.  The stock currently trades at $49.31.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. In Q4 2013, there was an additional ~45% stake increase at prices between $45 and $58. Q1 2014 saw an about turn as ~26% of the position was sold at prices between $54 and $62 and Q2 2014 saw an additional ~32% reduction at prices between $56 and $66. This quarter saw a further ~23% reduction at prices between $57.96 and $79.41. The stock currently trades at $76.29. It now accounts for 0.98% of the US long portfolio. Soros is moving on after having played the uptrend successfully.Level 3 Communications (LVLT) & Phillips 66 (PSX): Most of the 2.10% LVLT stake was purchased in Q2 & Q3 2014 at prices between $36.37 and $47.50. This quarter saw a ~28% reduction at prices between $38.05 and $50. The stock currently trades at $53.31. PSX trading pattern was similar in that the bulk of the position was purchased in the same timeframe at prices between $76.75 and $87.51. This quarter, ~50% of the stake was sold at prices between $65.09 and $81.31. The stock currently trades at $75.95 and the remaining position is at 0.92%.S&P 500 SPDR (SPY) PUTS: SPY Puts were increased by over 150% in Q4 2013 as SPY price-per-share varied between $165 and $185 - it was Soros’ largest 13F position by far at 11.12% (nominal value) of the US long portfolio. In Q1 2014, the position was reduced by ~77% as SPY price-per-share varied between $174 and $188. The following quarter saw the stake built back up to a whopping 16.65% position. Last quarter, around 24% of the position was sold when the shares traded between $191 and $202 and this quarter most of the remaining stake was sold when the shares traded between $186 and $209.Teva Pharmaceuticals (TEVA): TEVA is a 3.05% of the US long portfolio position established in Q3 2013 at prices between $37.50 and $41.50. The position was increased by almost 200% in Q4 2013 at prices between $36.59 and $41.70. In Q2 2014, the stake was reduced by 30% at prices between $48.69 and $54.06 and the pattern continued last quarter with a ~14% reduction at prices between $50.94 and $55. This quarter also saw a ~22% reduction at prices between $49.86 and $58.72. The stock currently trades at $56.93. TEVA was in an extended slump due to “patent cliff” concerns and other issues - its ten-year stock performance stood at a depressing 33% as of Q1 2014. Soros was near perfect in anticipating and catching the uptrend with this trade.YPF SA (YPF): YPF is the second-largest equity long position at 3.37% 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. This quarter saw a ~13% reduction at prices between $22.50 and $37. The stock currently trades at $26.98.Yahoo Inc. (YHOO): YHOO is a ~1% of the US long portfolio stake established last quarter at prices between $33 and $43. It was sold down by ~63% this quarter at prices between $37.82 and $52.37. The stock currently trades at $43.65.Allegion PLC (ALLE), Caesars Entertainment (CZR), Churchill Downs (CHDN), Delta Airlines (DAL), Essent Group (ESNT), Facebook Inc. (FB), Hubbell Inc. (HUB.B), Mack Cali Realty (CLI), Monsanto (MON), Motorola Solutions Inc. (MSI), Nice Systems (NICE), Polycom Inc. (PLCM), Travelport Worldwide (TVPT), Valeant Pharma. (VRX), Walgreen Company (WAG), and Western Refining (WNR): These are very small (less than ~1% of the US long portfolio) positions that were reduced this quarter. The position sizes are too small to have much of a portfolio impact.Kept Steady:Adecoagro S A (AGRO): AGRO is a 2.27% of the US long portfolio position that was established prior to its IPO. The stock currently trades at around $8.04, 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.Alibaba Group (BABA): BABA is Soros’ largest 13F individual stock position at ~5%. It was established last quarter at prices between $87 and $94. The stock currently trades just below that range at $86.74. For investors attempting to follow Soros, BABA is a good option to consider for further research.Caesars Acquisition (CACQ), Loral Space & Communications (LORL), New Oriental Education & Tech. (EDU), & Penn Virginia (PVA): These are very small (less than 1% of the US long portfolio) positions that were kept steady this quarter. The position sizes are too small to have much of a portfolio impact.The spreadsheet below highlights Soros’s significant US long stock positions as of Q4 2014:"