"Tracking George Soros’s Portfolio – Q3 2015 Update"
"Soros' 13F portfolio decreased from $10.75B to $6.61B this quarter. The number of positions decreased from 263 to 232.Both the SPY Puts & Calls were decreased this quarter. The net position is now a very small Puts stake.Allergan, eBay, Dow Chemical, and Zoetis stakes were substantially increased during the quarter.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 11/16/2015. Please visit our  for an idea on his investment philosophy and our  highlighting the fund’s moves during Q2 2015.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 decreased ~38% this quarter from $10.75B to $6.61B. The number of positions decreased from 263 to 232. 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 Dow Chemical, Allergan plc, and Adecoagro.To learn about Soros’ distinct trading style and philosophy, check out his “” and other works.New stakes:CIT Group Inc. (CIT): CIT is a 1.70% of the US long portfolio stake purchased this quarter at prices between $39.61 and $48.51. The stock currently trades at $42.70.PayPal Holdings (PYPL): PYPL is a 2.08% of the portfolio position established this quarter as a result of the spinoff of PayPal from eBay. eBay holders received one share of PayPal for each share held. PYPL currently trades at $36.36.Amazon.com (AMZN), Chevron Corporation (CVX), and Schlumberger Ltd. (SLB): These are very small (less than ~1% of the portfolio each) stakes established this quarter.Stake Disposals: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. Last quarter, the pattern reversed again: ~42% reduction at prices between $40 and $55. The elimination this quarter happened at prices between $48.36 and $60.77. The stock currently trades at $56.73. HLF is a very volatile stock and Soros played the trends.Alcoa Inc. (AA), DIRECTV (DTV), D R Horton Inc. (DHI) & Calls, iShares MSCI Emerging (EEM) Calls, Lennar Corp. (LEN) & Calls, Nice Systems (NICE), Pulte Group Inc. (PHM), and United Continental Holdings (UAL): These are very small (less than ~1% of the portfolio each) stakes eliminated this quarter.Stake Increases:Allergan plc (AGN) previously Actavis plc: AGN is Soros’ second-largest individual stock position at 3.18% of the 13F portfolio. The original stake was doubled in Q4 2014 at prices between $225 and $271 and reduced by around two-thirds last quarter at prices between $283 and $313. This quarter saw a huge ~390% increase at prices between $252 and $340. The stock currently trades at $313.Note: Pfizer is expected to announce a $150B (mostly stock) deal to acquire Allergan plc today.Alibaba Group (BABA): BABA was Soros’ largest 13F individual stock position at ~3.64% as of Q1 2015. It was established in Q3 2014 at prices between $87 and $94. Last quarter, the position was almost sold out at prices between $79.54 and $93.88. This quarter, the pattern reversed again: significant increase to a ~0.9% portfolio stake at prices between $57.39 and $84.15. The stock currently trades at $79.96.American Airlines (AAL): The original very 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 the following quarter with a ~53% reduction at prices between $46.53 and $55.76 and another ~19% reduction last quarter at prices between $39.48 and $52.78. This quarter, the pattern reversed again: ~50% increase at prices between $37.50 and $44. The stock currently trades at $42.20.Cypress Semiconductor (CY) & Calls: CY position was increased by ~400% in Q1 2015 and another ~19% last quarter. The increase last quarter happened at prices between $11.56 and $14.14. This quarter also saw a ~18% increase at prices between $8.28 and $12.15. The stock currently trades at $9.88. The stake is significantly large at 2.55% of the portfolio. Soros controls ~5.9% of the business.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.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. This quarter saw a ~23% increase at prices between $39.39 and $53.04. It is now the largest individual stock position at 3.82% of the US long portfolio. The stock currently trades at $53.31.Note: Dan Loeb (Third Point) established a huge activist stake in Dow Chemical in Q4 2013 at around the mid-40s price-range.eBay Inc. (EBAY): EBAY is a 2% portfolio stake. The bulk of the buying happened in Q1 2015 and this quarter at prices between $22.32 and $28.75. The stock currently trades at $29.06.Note: the prices quoted above are adjusted for the spinoff of PayPal from eBay.Energen Corporation (EGN): EGN has been in the portfolio since Q1 2013. Q4 2013 saw a ~50% increase at prices between $66 and $85. Q1 2015 saw an about turn: ~37% reduction at prices between $59.05 and $70.54 and the remaining position was almost sold out last quarter at prices between $66 and $76. This quarter saw a huge ~470% increase at prices between $44.17 and $68.30. The stake is still relatively small at 0.74% of the portfolio. The stock is now at $56.44.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. The following quarters saw a combined ~65% increase at prices between $32.62 and $38.87. Last quarter, the stake was sold down by ~80% at prices between $33.23 and $37.50. This quarter, the pattern reversed again: around two-thirds increase at prices between $27.28 and $33.33. The stock currently trades at $36.33 and the position is at 0.84%.iShares China Large Cap (FXI) Calls: The small stake established last quarter at prices between $44.40 and $52.71 was more than doubled this quarter as the stock traded between $33.58 and $46.10. The position is now at 2.22% of the portfolio. FXI is currently at $38.47.Note: FXI has seen a recent roundtrip: It was a fairly large 2.29% of the portfolio stake entered between $37.46 and $41.98 and exited in Q1 2015 between $40.77 and $44.74.Polycom Inc. (PLCM): The bulk of the 1.70% PLCM stake is from Q4 2013 and Q1 2014 at a cost-basis of around $11.50. Last quarter had seen a minor decrease while this quarter saw a marginal increase. The stock currently trades at $13.23.Vipshop Holdings (VIPS): VIPS is a 1.49% of the US long portfolio position. The bulk was purchased in Q1 2014 at around $10 cost-basis. The stake saw a ~25% increase last quarter at prices between $21.54 and $30 and another ~24% this quarter at prices between $15.85 and $23.11. The stock currently trades at $16.36.Zoetis (ZTS): ZTS is a 2.19% 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. Last quarter saw a one-third reduction at prices between $44 and $55 while this quarter saw a ~28% increase at prices between $39.65 and $50.02. The stock currently trades at $47.32.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.Broadcom Corporation (BRCM), CTrip.com (CTRP), Delta Air Lines (DAL), Gaming & Leisure Properties (GLPI), Lattice Semiconductor (LSCC), Lions Gate Entertainment (LGF) & Calls, NRG Energy (NRG), PMC-Sierra (PMCS), Qunar Cayman (QUNR), Rovi Corporation (ROVI), Southwest Airlines (LUV), and Viavi Solutions (VIAV): These very small (less than ~1.25% of the portfolio each) stakes were increased this quarter.Note 1: Microsemi (MSCC) and Skyworks Solutions (SWKS) are in a bidding war for PMC-Sierra. Soros controls ~5.6% of PMC-Sierra.Note 2: NRG had seen a recent presence in the portfolio: a very small 0.50% of the portfolio stake was eliminated in Q1 2015.Stake Decreases:EQT Corporation (EQT): The original position in EQT was established in Q2 2012 at prices between $44 and $54.07. 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. Q1 2015 saw a ~37% reduction at prices between $72.53 and $83.43 and last quarter saw a further ~58% reduction at prices between $81 and $92. This quarter, the remaining 0.58% portfolio stake was almost sold out at prices between $64.77 and $81.34. The stock currently trades at $58.81.Endo International plc (ENDP): ENDP is a fairly large 2.11% of the portfolio position established in Q4 2014 at prices between $60.19 and $73.37 and increased by ~27% the following quarter at prices between $71.97 and $92.37. This quarter saw a ~12% reduction at prices between $60.57 and $87.63. The stock currently trades at $59.37.Essent Group (ESNT): ESNT is a 1.12% 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 last quarter at prices between $23.64 and $27.85. This quarter saw a further one-third reduction at prices between $24.55 and $29.48. The stock currently trades at $23.96.Facebook Inc. (FB): FB was a minutely small ~0.10% portfolio stake as of Q1 2015. It was increased to a fairly large 2.07% of the portfolio position last quarter at prices between $77.46 and $88.86. This quarter saw a ~30% reduction at prices between $82.09 and $98.39. The stock currently trades at $107 and the stake is at 2.45% of the portfolio.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.Level 3 Communications (LVLT): The vast majority of the 1.32% 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 the following quarter saw a further ~11% reduction at prices between $47.02 and $55.46. Last quarter saw further selling: ~40% reduction at prices between $52 and $57. The stock currently trades at $50.94. This quarter also saw a marginal further decrease.LyondellBasell Industries (LYB): LYB is a 0.23% of the US long portfolio stake. It was established in Q4 2014 at prices between $70.61 and $109 and reduced by ~27% the following quarter at prices between $74.36 and $91.55. Last quarter saw a further ~15% reduction at prices between $87.80 and $106. This quarter, the remaining 1.72% of the portfolio position was almost eliminated at prices between $77 and $104. The stock currently trades at $93.29.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 and in Q4 2014 most of the remaining stake was sold. Q1 2015 had seen an about-turn as the position was rebuilt back up to a large ~11% portfolio stake. Last quarter, the Puts were sold down while simultaneously adding a huge position in the Calls. This quarter, both stakes were reduced. The net is a very small ~1.46% position in the Puts.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 a ~1.91% of the US long portfolio position. It was established last quarter at prices between $149 and $184 and reduced by ~50% this quarter at prices between $174 and $193. The stock currently trades at $184.Note: Charter Communications (CHTR) is set to acquire TWC in a $195 cash-and-stock deal ($100 cash).YPF SA (YPF): YPF is a fairly large 2.33% of the US long portfolio stake. 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. Last two quarters have seen a combined ~14% reduction at prices between $14.91 and $31.57. The stock currently trades at $20.53.Allegion PLC (ALLE), Kraft-Heinz previously Kraft Foods Group (HNZ), Mondelez Intl. (MDLZ), Monsanto (MON), Motorola Solutions Inc. (MSI), NextEra Energy Inc. (NEE), Charles Schwab (SCHW), and Western Refining (WNR): These are very small (less than ~1.5% of the US long portfolio each) positions reduced this quarter.Kept Steady:Adecoagro S A (AGRO): AGRO is a large (top three) 3.12% of the US long portfolio position. It was established prior to its IPO. The stock currently trades at around $10.90, just below the IPO price of $11. For investors attempting to follow Soros, AGRO is a good option to consider for further research.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. The position was sold down since. Last quarter saw a ~6% increase at prices between $66 and $76. The stake is now at 1.14% and the stock is at $63.82.Ally Financial (ALLY), Caesars Acquisition (CACQ), Churchill Downs (CHDN), Loral Space & Communications (LORL), Travelport Worldwide (TVPT), and Yum Brands (YUM): These very small (less than ~1% of the portfolio each) positions were kept steady during the quarter. Soros controls ~5% of Loral Space & Communications.Although the relative sizes are very small, it is significant that Soros has ownership stakes in the following businesses: Exa Corp (EXA) - ~8.6%, MaxLinear (MXL) - ~4.7%, and Quantum Corporation (QTM) - ~1.25%. A regulatory 13G filing on 11/16/2015 also shows a ~7% (~1.4M shares) ownership stake in Hercules Offshore (HEROQ).The spreadsheet below highlights Soros’s significant US long stock positions as of Q3 2015:"