"Tracking George Soros’s Portfolio – Q3 2019 Update"
"Soros' 13F portfolio value decreased from $4.27B to $3.61B this quarter. The number of positions increased from 151 to 175.Soros added a short position in SPDR Energy ETF while reducing Caesars Entertainment.The large long position in QQQ and the large short position in SPY were both dropped during the quarter.This article is part of a series that provides an ongoing analysis of the changes made to George Soros’s 13F stock portfolio on a quarterly basis. It is based on George Soros’s regulatory  filed on 11/14/2019. Please visit our  for an idea on his investment philosophy and our  for the fund’s moves during Q2 2019.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 ~22% this quarter from $4.27B to $3.61B. The number of positions increased from 151 to 175. Very small stock positions and large debt holdings together account for ~34% of the 13F holdings. The 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. The focus of this article is on the larger equity positions. The top three individual stocks held are Liberty Broadband, VICI Properties, and Caesars Entertainment. To learn about Soros’ distinct trading style and philosophy, check out his “” and other works.New stakes:SPDR Energy (XLE) Puts, Peloton Interactive (PTON), Alcon Inc. (ALC), Ally Financial (ALLY), and Owl Rock Capital (ORCC): These are the new positions this quarter. The 1.64% of the portfolio short position in XLE was established as the underlying traded between $56 and $65. It is now at $60.08. PTON had an IPO last month. Shares started trading at ~$25 and currently goes for $27.23. Soros’ stake is at 1.10% of the portfolio. The 0.86% ALC position was purchased at prices between $56 and $62.50 and it currently goes for $58.83. ALLY and ORCC are minutely small (less than ~0.60%) new positions established this quarter.Stake Disposals:Invesco QQQ Trust (QQQ): The large 5.1% of the portfolio QQQ stake was established last quarter at prices between $170 and $191 and disposed this quarter at prices between $181 and $195. It currently trades at $203.SPDR S&P 500 (SPY) Puts: The short position thru SPY Puts was a large ~8% of the portfolio stake as of last quarter. Most of it was established over the previous two quarters as SPY traded between $234 and $292. It is currently at ~$312. This quarter saw the position eliminated as the underlying traded between $284 and $302.Walt Disney (DIS): DIS was a ~1% position purchased in Q3 2018 at prices between $104 and $117 and reduced by ~40% next quarter at prices between $100 and $119. There was a ~75% stake increase last quarter at prices between $112 and $143. This quarter saw the position disposed at prices between $130 and $146. The stock currently trades at $145.Vulcan Materials (VMC): A 0.74% VMC position was purchased last quarter at prices between $119 and $137 and eliminated this quarter at prices between $135 and $152. It currently goes for ~$141.Red Hat Inc. (RHT): RHT was a merger-arbitrage stake: IBM (IBM) bought Red Hat for $190 per share cash and the transaction closed in July thus eliminating this position.iShares Russell 1000 ETF (IWB): IWB was a ~1% long position purchased in Q4 2018 at prices between $130 and $162 and increased by ~45% next quarter at prices between $135 and $159. Last quarter saw a ~35% selling at prices between $153 and $164. The disposal this quarter was at prices between $158 and $168. It is now at ~$173.Conagra Foods (CAG): The 0.71% CAG position was established as a result of the merger with Pinnacle Foods. Soros had a position in Pinnacle Foods for which he received CAG shares in the ration 1:0.6494. The stake was increased by two-thirds in Q1 2019 at prices between $21 and $28. Last quarter saw a ~38% reduction at prices between $25.50 and $31.30. The elimination this quarter was at prices between $26.50 and $31. The stock is currently at $28.81.McCormick (MKC): MKC position saw a ~250% increase in Q4 2018 at prices between $132 and $152. The stake was increased by another ~18% next quarter while last quarter there was a one-third selling at prices between $150 and $158. The position was eliminated this quarter at prices between $155 and $170. It currently trades at ~$162.First Data Corp (FDC): FDC was a small 0.52% of the portfolio merger-arbitrage stake established in Q1 2019. In January, Fiserv (FISV) agreed to acquire FDC in an all-stock merger (0.303 shares of FISV for each FDC held) that closed in July.Canadian Natural Resources (CNQ) Calls: The very small 0.58% of the portfolio stake in CNQ thru Calls were disposed during the quarter.Stake Increases:Celgene Corp (CELG): CELG is a 3.24% merger-arbitrage stake. Bristol-Myers Squibb (BMY) is buying Celgene in a cash-and-stock deal ($50 cash, one share of BMY, and a tradeable CVR with a one-time potential payment of $9 in 2021 for each share of CELG held) announced in January. The position was increased by ~45% this quarter at prices between $89.50 and $99. CELG is currently at $110 and BMY at $58.59.Mondelez Intl. (MDLZ): The 1.86% MDLZ stake had seen a ~140% increase in Q4 2018 at prices between $39.50 and $45. It saw a ~8% trimming next quarter while this quarter saw a minor increase. The stock currently trades at $52.82.eBay Inc. (EBAY) and Symantec Corp (SYMC): These two positions were established last quarter. The 1.29% EBAY position was purchased at prices between $35.50 and $40 and increased by ~12% this quarter at prices between $38 and $42. The stock currently trades at ~$35.27. SYMC is a 1.28% portfolio stake established at prices between $18 and $24.50. This quarter saw a ~5% stake increase. Broadcom (AVGO) agreed to acquire Symantec and that transaction closed earlier this month.UnitedHealth Group (UNH): UNH is a 0.66% UNH stake which was doubled in Q4 2018 at prices between $233 and $286. It was sold down by ~60% in Q1 2019 at prices between $236 and $271. Last quarter saw a ~230% stake increase at prices between $217 and $250. It is now at ~$269. This quarter also saw a ~17% stake increase.Annaly Capital Management (NLY), Citigroup (C), Edgewell Personal Care (EPC), and SPDR S&P 500 (SPY) & Calls: These very small (less than ~1% of the portfolio each) positions were increased during the quarter.Stake Decreases:Liberty Broadband (LBRDK): LBRDK is the largest individual stock position by far at 20.42% of the portfolio. The stake was established in Q2 2016 at prices between $55 and $60.50. The stock has almost doubled and is currently trading at ~$118. Last few quarters have seen minor trimming.VICI Properties (VICI): In October 2017, Caesars Entertainment combined with Caesars Acquisition in a merger (bankruptcy court reorg). The bankruptcy reorg included the spinoff of VICI Properties whereby the creditors received VICI shares. The 9.84% of the portfolio position (~7% of the business) in VICI came about as a result of this transaction – Soros had huge stakes (both equity and debt) in the parent businesses. The stock started trading at $18 per share and currently goes for $24.64. Last quarter saw a ~5% stake increase while this quarter saw a ~10% reduction.Caesars Entertainment (CZR): Soros had huge stakes (both equity and debt) in Caesars Entertainment and Caesars acquisition. In October 2017, they combined in a bankruptcy court reorg. The terms called for Caesars Acquisition shareholders to receive 1.625 shares of CZR for each share held. The transaction resulted in Soros’ position in CZR increasing from ~3M shares to 34.5M shares - his debt holdings also got converted in the reorg. Last three quarters have seen the position sold down by ~60% at prices between $6.75 and $12.25. The stock currently trades at $12.96.Note: In June Eldorado Resorts (ERI) agreed to buy the company in a cash-and-stock deal ($8.40 cash and 0.0899 ERI shares for each share of CZR held) engineered by Carl Icahn.D R Horton (DHI): The ~2% DHI stake was established in Q1 2019 at prices between $35 and $47 and increased by ~70% last quarter at prices between $42 and $47. The stock currently trades above those ranges at $53.50. This quarter saw a ~18% selling at prices between $43.50 and $53.Altaba Inc. (AABA) previously Yahoo: AABA was a fairly large (top five) ~4% portfolio position established in Q2 2017 at prices between $46 and $56 and increased by ~10% the following quarter at prices between $54.50 and $67.50. Last few quarters had seen only minor adjustments. In September, shareholders received $51.50 per share in cash as a pre-dissolution distribution. The numbers reported in the 13F seems to assume $19.50 per share in remaining value.LPL Financial (LPLA): The bulk of the 1.16% of the portfolio stake in LPLA was purchased in Q2 2018 at prices between $57 and $71 and the stock currently trades above that range at ~$91. There have only been minor adjustments since.Grifols S A (GRFS): The 1.16% portfolio stake in GRFS was acquired in Q1 2019 at prices between $17.50 and $21 and the stock currently trades at $21.69. There was marginal trimming this quarter.Energizer Holdings (ENR): ENR is a 0.85% stake purchased in Q4 2018 at prices between $43 and $62 and increased by ~55% next quarter at prices between $44 and $49. It is now at $48.81. There was a ~16% selling this quarter at prices between $33.50 and $46.Archer Daniels Midland (ADM): The ADM position was established in Q3 2018 at prices between $45 and $51 and reduced by ~45% next quarter at prices between $39.50 and $52. There was an about turn in Q1 2019: stake more than doubled at prices between $40.50 and $45. That was followed with a ~20% stake increase last quarter at prices between $38.25 and $44.60. This quarter saw a ~60% selling at prices between $36.75 and $42. The stock currently trades at $42.87.E*Trade Financial (ETFC), Keurig Dr. Pepper (KDP), Morgan Stanley (MSN), SPDR Oil & Gas Exploration (XOP) & Calls, and Viper Energy Partners LP (VNOM): These very small positions (less than ~0.70% of the portfolio each) were reduced during the quarter.Kept Steady:Alphabet Inc. (GOOG): GOOG is a 1.67% of the portfolio position purchased last quarter at prices between $1036 and $1288 and the stock is now at $1335.Note: Alphabet is a frequently traded stock in Soros’ portfolio.JPMorgan Chase (JPM): The 0.69% JPM stake was acquired in Q1 2018 at prices between $107 and $119. Q3 2018 saw the position reduced by ~60% at prices between $104 and $119. It currently trades at ~$130. Q4 2018 also saw a ~20% selling.SPDR Financial (XLF) and Synchrony Financial (SYF): These very small positions (less than ~0.70% of the portfolio each) were kept steady this quarter.The spreadsheet below highlights Soros’s significantly large 13F positions as of Q3 2019:"