In this article, we discuss 5 new stock picks of billionaire George Soros. If you want our detailed analysis of these stocks, go directly to 10 New Stock Picks of Billionaire George Soros.
5. TransDigm Group Incorporated (NYSE:TDG)
Soros Fund Management’s Stake Value: $14,953,000
Percentage of Soros Fund Management’s 13F Portfolio: 0.20%
Number of Hedge Fund Holders: 63
Soros Fund Management purchased 23,500 shares of TransDigm Group Incorporated (NYSE:TDG) in Q4 2021, worth approximately $15 million, representing 0.20% of the firm’s total 13F securities. TransDigm Group Incorporated (NYSE:TDG) is an Ohio-based company that manufactures engineered aerospace components.
Publishing its Q4 results on February 8, TransDigm Group Incorporated (NYSE:TDG) announced earnings per share of $3.00, missing estimates by $0.17. The $1.19 billion revenue missed estimates by roughly $42 million.
On February 9, Morgan Stanley analyst Kristine Liwag raised the price target on TransDigm Group Incorporated (NYSE:TDG) to $801 from $762 and kept an Overweight rating on the shares. Though the company reported a top and bottom line miss in fiscal Q1 driven by its Defense segment, EBITDA margins remained strong, commercial aftermarket activity continued to strengthen, and sequential bookings growth outpaced sales growth in the quarter, the analyst told investors in a bullish note.
A total of 63 hedge funds were bullish on TransDigm Group Incorporated (NYSE:TDG) in Q3 2021, up from 57 funds in the quarter prior. Stockbridge Partners held a significant stake in TransDigm Group Incorporated (NYSE:TDG) as of September 2021, with 1.5 million shares worth approximately $971 million.
Here is what Vulcan Value Partners has to say about TransDigm Group Incorporated (NYSE:TDG) in its Q2 2021 investor letter:
“TransDigm Group Inc., another material contributor during the quarter, is an aerospace manufacturer providing highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales. Its business was impacted by the global pandemic; however, the company has been able to maintain margins despite strong revenue headwinds, and it continues to generate strong free cash flow.”
4. Warby Parker Inc. (NYSE:WRBY)
Soros Fund Management’s Stake Value: $15,282,000
Percentage of Soros Fund Management’s 13F Portfolio: 0.20%
Number of Hedge Fund Holders: 12
Warby Parker Inc. (NYSE:WRBY) is a New York-based online retailer of prescription glasses and fashion eyewear, which has now expanded to physical retail stores across the United States and Canada.
Soros Fund Management acquired a position in Warby Parker Inc. (NYSE:WRBY) in the fourth quarter of 2021, buying 328,216 shares of the company, worth $15.2 million. The stock accounts for 0.20% of the fund’s Q4 securities.
Loop Capital analyst Anthony Chukumba on December 10 lowered the price target on Warby Parker Inc. (NYSE:WRBY) to $52 from $60 and kept a Hold rating on the shares. The price target cut reflects rising inflation, which may negatively impact the valuations that investors are willing to pay for high growth companies like Warby Parker Inc. (NYSE:WRBY), the analyst conveyed to investors in a research note.
Billionaire Daniel Sundheim’s D1 Capital Partners held the biggest stake in Warby Parker Inc. (NYSE:WRBY), owning over 8 million shares worth $432.5 million. Overall, 12 hedge funds were bullish on the stock in the third quarter.
3. Bowlero Corp. (NYSE:BOWL)
Soros Fund Management’s Stake Value: $84,788,000
Percentage of Soros Fund Management’s 13F Portfolio: 1.16%
Number of Hedge Fund Holders: N/A
Bowlero Corp. (NYSE:BOWL) is a New York-based company that operates bowling centers. Soros Fund Management acquired 9.40 million shares of Bowlero Corp. (NYSE:BOWL) in Q4 2021, valued at $84.78 million, representing 1.16% of the firm’s total 13F securities.
In a press release on February 9, Bowlero Corp. (NYSE:BOWL) reported a Q2 net loss of C$34.5M. The company’s revenue came in at C$205.19 million, up 11% year-over-year, outperforming estimates by C$7.29 million. On February 7, Bowlero Corp. (NYSE:BOWL) announced that its board of directors has approved a repurchase program for up to $200 million of its outstanding shares of Class A common stock and warrants through February 3.
Woodson Capital Management held the leading stake in Bowlero Corp. (NYSE:BOWL) at the close of the third quarter of 2021, with 1.50 million shares worth roughly $15 million.
2. Cerner Corporation (NASDAQ:CERN)
Soros Fund Management’s Stake Value: $108,658,000
Percentage of Soros Fund Management’s 13F Portfolio: 1.48%
Number of Hedge Fund Holders: 36
Cerner Corporation (NASDAQ:CERN) is an American supplier of health informatics software, devices, and hardware. Soros Fund Management acquired 1.17 million shares of Cerner Corporation (NASDAQ:CERN) in Q4 2021, worth $108.6 million, representing 1.48% of the firm’s 13F portfolio.
On February 11, Oracle Corporation (NYSE:ORCL) announced that it extended the tender offer for shares of Cerner Corporation (NASDAQ:CERN) to March 16, from a prior date of February 15. In December, Oracle announced its intention to acquire Cerner Corporation (NASDAQ:CERN) for $95 per share in cash, pushing further into the healthcare tech space.
KeyBanc analyst Donald Hooker on December 21 downgraded Cerner Corporation (NASDAQ:CERN) to Sector Weight from Overweight without a price target after news that the company plans to be acquired by Oracle Corporation (NYSE:ORCL). The analyst believes the acquisition price of $95 per share fully values Cerner Corporation (NASDAQ:CERN).
In Q3 2021, 36 hedge funds reported owning stakes in Cerner Corporation (NASDAQ:CERN), amounting to $1.27 billion, as compared to 38 funds in the prior quarter, holding stakes in Cerner Corporation (NASDAQ:CERN) worth $1.39 billion. Jeffrey Smith’s Starboard Value LP is the biggest stakeholder of the company as of September 2021, with 3.2 million shares valued at approximately $229 million.
Here is what Cooper Investors Global Equities Fund (Hedged) has to say about Cerner Corporation (NASDAQ:CERN) in their Q1 2021 investor letter:
“The investment in Cerner, made just over a year ago, was based on what we perceived to be a Low-Risk Turnaround opportunity as a refreshed management team sought to increase margins, reduce capex and utilize balance sheet latency with buybacks and acquisitions. Taking account of the tough 2020 for Cerner’s hospital client base the company did a reasonable job executing on these initiatives. However, moving into 2021 more recent observations around intentionality and focus led to a reassessment of the investment proposition, particularly relative to the portfolio’s other technology and software investments.”
1. Rivian Automotive, Inc. (NASDAQ:RIVN)
Soros Fund Management’s Stake Value: $2,056,770,000
Percentage of Soros Fund Management’s 13F Portfolio: 28.14%
Number of Hedge Fund Holders: N/A
Rivian Automotive, Inc. (NASDAQ:RIVN) is the largest holding in the fourth quarter portfolio of Soros Fund Management, with the firm acquiring 19.8 million shares of Rivian Automotive, Inc. (NASDAQ:RIVN) in Q4, worth more than $2 billion, representing 28.14% of the total 13F securities for the period.
Rivian Automotive, Inc. (NASDAQ:RIVN) is a California-based manufacturer of electric adventure vehicles, focusing mainly on pickup trucks and sports utility vehicles.
JPMorgan analyst Ryan Brinkman lowered the price target on Rivian Automotive, Inc. (NASDAQ:RIVN) on January 26 to $84 from $104 and kept a Neutral rating on the shares. The analyst slightly lowered expectations for Q4 Rivian units to $800 from $900, but the reduction in the price target is a consequence of a higher assumed discount rate.
Here is what Greenlight Capital has to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q4 2021 investor letter:
“We made a material gain in Rivian (RIVN) as a result of its IPO. We met RIVN’s sponsors in 2018 as part of our continued work on electric vehicles, and were favorably impressed by their technology and discipline. In mid-2020, we made a small investment at a $10 billion valuation. In November, RIVN went public at a $70 billion valuation and traded to a peak valuation of $162 billion. We hedged in the options market to lock in a minimum valuation of about $120 billion for a good chunk of our position. While we are believers in the company, we did not have material exposure at year end.”
You can also take a look at Morgan Stanley’s Top 10 Stock Picks for 2022 and 15 Worst Stock Picks of Cathie Wood.
