In this article, we discuss 10 stocks billionaire George Soros is selling in 2022. If you want to see more stocks discarded by the billionaire, check out Billionaire George Soros is Selling These 5 Stocks in 2022.
George Soros is a Hungarian-American investor, hedge fund manager, author, and philanthropist who founded Soros Fund Management in 1970, a New York-based hedge fund which now operates as a family office. It was considered one of the most prominent and profitable hedge funds on Wall Street in 2010.
Securities filings for Q1 2022 reveal that Soros Fund Management manages a $6.5 billion 13F portfolio, with investments focused in the real estate, information technology, healthcare, finance, consumer discretionary, and communications sectors. In the first fiscal quarter of 2022, Soros Fund Management purchased 53 new stocks, made additional purchases in 31 securities, discarded 59 stocks entirely, and slashed positions in 24 companies. The hedge fund has a top ten holdings concentration of 48.93%.
The hedge fund’s top buys in Q1 were The TJX Companies, Inc. (NYSE:TJX), Shell plc (NYSE:SHEL), and Zynga Inc. (NASDAQ:ZNGA). Whereas, it sold out of BP p.l.c. (NYSE:BP), Booking Holdings Inc. (NASDAQ:BKNG), and Lyft, Inc. (NASDAQ:LYFT), among others.
Soros Fund Management’s most notable stock picks from the first fiscal quarter of 2022 included Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Salesforce, Inc. (NYSE:CRM), however, in this article we discuss the stocks sold by billionaire George Soros’ fund in 2022.
Our Methodology
We used the portfolio of George Soros’ Soros Fund Management for this analysis, selecting the most prominent stocks that the hedge fund sold in Q1 2022. The hedge fund sentiment around the stocks as of the conclusion of the fourth quarter of 2021 is mentioned, as Insider Monkey believes observing the stock picks of elite funds is a wise strategy. We have also mentioned the latest analyst ratings for the securities to provide the perspective of market experts regarding the stocks for readers.
Billionaire George Soros is Selling These Stocks in 2022
10. Activision Blizzard, Inc. (NASDAQ:ATVI)
Number of Hedge Fund Holders: 70
Activision Blizzard, Inc. (NASDAQ:ATVI) is headquartered in Santa Monica, California, providing interactive entertainment content and gaming services to customers in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. In Q4 2021, George Soros’ hedge fund owned more than 1 million Activision Blizzard, Inc. (NASDAQ:ATVI) shares, worth $67.4 million. The fund sold off its stake entirely in the first quarter of 2022.
Benchmark analyst Mike Hickey observed on April 25 that Activision Blizzard, Inc. (NASDAQ:ATVI) posted “disappointing” fiscal Q1 financial results, slipping year-over-year, mainly reflecting slow volume for the Call of Duty franchise and Blizzard, which counteracted the ongoing strength from the King mobile segment. However, the Microsoft acquisition has created a “valuation floor” for Activision Blizzard, Inc. (NASDAQ:ATVI) investors, contended the analyst. If Microsoft’s bid for Activision Blizzard, Inc. (NASDAQ:ATVI) is challenged by the Federal Trade Commission, it would conclude in 2023, a year Activision “can deliver record financial results that should be reflected in a higher valuation”, the analyst added. He consequently maintained a Buy rating on Activision Blizzard, Inc. (NASDAQ:ATVI) shares with a $100 price target.
According to Insider Monkey’s Q4 data, 70 hedge funds were long Activision Blizzard, Inc. (NASDAQ:ATVI), down from 80 funds in the earlier quarter. Warren Buffett’s Berkshire Hathaway held a leading stake in the company in the first fiscal quarter of 2022, with 64.3 million shares worth $5.15 billion.
Unlike Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Salesforce, Inc. (NYSE:CRM), Soros Fund Management sold out of Activision Blizzard, Inc. (NASDAQ:ATVI) in Q1.
Here is what Baron Partners Fund has to say about Activision Blizzard, Inc. (NASDAQ:ATVI) in its Q4 2021 investor letter:
“The Fund’s Core Growth investments were negatively impacted by the market rotation to value-oriented businesses. Fundamentals for most of our Core Growth holdings remain strong. We exited two positions in this space, which included Activision Blizzard, Inc. We believe ESG concerns at Activision could be a negative for the company in the coming years.
Shares of Activision Blizzard, Inc., a leading video game publisher, detracted from performance. The company reported solid earnings results and maintained guidance for fiscal year 2021. However, the stock fell primarily due to a combination of increased concern around an employee lawsuit alleging sexual harassment and timing delays for two key Blizzard games (Diablo IV and Overwatch 2). We sold our position.”
9. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 90
General Motors Company (NYSE:GM) is a Michigan-based automaker that sells vehicles and auto parts to customers in North America, the Asia Pacific, the Middle East, Africa, South America, the United States, and China. George Soros’ fund owned 860,002 General Motors Company (NYSE:GM) shares in the fourth quarter of 2021, which were discarded entirely in Q1 2022.
Morgan Stanley analyst Adam Jonas on May 13 lowered the price target on General Motors Company (NYSE:GM) to $44 from $50 and reiterated an Equal Weight rating on the stock. The analyst slashed growth and margin forecasts “materially” for General Motors Company (NYSE:GM) amid the “highly uncertain economic environment and extraordinarily high dispersion of outcomes”. He noted that supply chain challenges erode the time value for automakers to drive positive EBITDA during what’s left of the cycle. Additionally, oil supply “shock” and soaring interest rates can curb demand, the analyst told investors.
Among the hedge funds tracked by Insider Monkey, 90 funds were long General Motors Company (NYSE:GM) at the end of December 2021, up from 77 funds in the prior quarter. The total stakes owned in Q4 amounted to $7.1 billion, compared to $6.4 billion in Q3. In the first quarter of 2022, Harris Associates disclosed a significant position in the company, comprising over 41 million shares valued at $1.79 billion.
Here is what Oakmark Global Fund has to say about General Motors Company (NYSE:GM) in its Q1 2022 investor letter:
“General Motors (NYSE:GM) was a detractor during the quarter, due to increased macro uncertainty, higher fuel prices, and concerns over rising input costs, which pressured the company in particular and the auto industry as a whole. While we are closely monitoring the potential impact of these dynamics, industry demand remains robust, driven by strong consumer balance sheets and pent-up demand after multiple years of constrained production. We also remain confident in GM’s ability to navigate a complex operating environment, which the company has consistently demonstrated over the past few years. Finally, the long-term picture remains bright. We believe GM is significantly undervalued, is well-positioned for the long-term transition to electric vehicles and has numerous needle-moving ancillary business opportunities (most notably Cruise, which is an industry leader in autonomous vehicle technology) that are underappreciated.”
8. Intercontinental Exchange, Inc. (NYSE:ICE)
Number of Hedge Fund Holders: 56
Intercontinental Exchange, Inc. (NYSE:ICE) is an American company that operates regulated exchanges, clearing houses, and listings venues for commodity, fixed income, and equity markets. George Soros’ Soros Fund Management disposed of its $970,000 Intercontinental Exchange, Inc. (NYSE:ICE) stake in the first fiscal quarter of 2022.
Deutsche Bank analyst Brian Bedell on May 19 lowered the price target on Intercontinental Exchange, Inc. (NYSE:ICE) to $117 from $143 and maintained a Buy rating on the shares. The analyst noted that prominent buying opportunities are emerging in the brokers, asset managers, and exchange sector amid the equity market decline. The stocks are pricing in an approximate 55% chance of recession, making the risk/return for 12-18 month holding periods across the majority of the sector “very attractive”, added the analyst.
According to Insider Monkey’s fourth quarter database, 56 hedge funds were bullish on Intercontinental Exchange, Inc. (NYSE:ICE), up from 48 funds in the earlier quarter. William Von Mueffling’s Cantillon Capital Management owned a significant stake in the company in the first quarter of 2022, with almost 4 million shares worth $523.17 million.
Here is what Oakmark Funds has to say about Intercontinental Exchange, Inc. (NYSE:ICE) in its Q2 2021 investor letter:
“Intercontinental Exchange is one of the largest and, in our view, most successful financial exchange operators in the world. The company was created through a series of shrewd acquisitions executed by their founder and CEO Jeff Sprecher. Sprecher is one of the more capable CEOs we’ve evaluated, having demonstrated a long history of astute capital allocation and a willingness to act and adapt rapidly to new opportunities and competitive threats. Today, Intercontinental Exchange competes in three primary business segments: exchanges, fixed income/data services and mortgage technology. We believe each of these businesses exhibits attractive economic characteristics and that each should grow earnings well in excess of GDP over the long term. Despite this favorable long-term outlook, the company currently trades at a P/E ratio that is roughly in line with the S&P 500. We believe a business with Intercontinental Exchange’s strong competitive position, excellent management team and attractive growth outlook deserves to trade well above a market multiple. We like buying great businesses at average prices and believe Intercontinental Exchange represents a compelling opportunity to do just that.”
7. Lithia Motors, Inc. (NYSE:LAD)
Number of Hedge Fund Holders: 56
Lithia Motors, Inc. (NYSE:LAD) was founded in 1946 and is headquartered in Medford, Oregon, operating as an automotive retailer through Domestic, Import, and Luxury segments. In Q4 2021, George Soros’ hedge fund owned 35,550 Lithia Motors, Inc. (NYSE:LAD) shares, worth $10.5 million. The fund disposed of its stake entirely in the first fiscal quarter of 2022.
Morgan Stanley analyst Adam Jonas lowered the price target on Lithia Motors, Inc. (NYSE:LAD) to $260 from $300 and kept an Underweight rating on the shares on May 20. The analyst has an increasingly cautious view on the auto dealers, noting conditions are building for “mean-reversion”. New profit per unit is three-times pre-pandemic levels, which is unsustainable, especially given soaring interest rates and increased pressure on the consumers, the analyst told investors in a research note. The analyst believes more than 50% “negative revision risk” is not fully priced into the stocks.
According to Insider Monkey’s fourth quarter database, 56 hedge funds were bullish on Lithia Motors, Inc. (NYSE:LAD), compared to 64 funds in the preceding quarter. The total stakes held by elite funds in Lithia Motors, Inc. (NYSE:LAD) in Q4 were $2.6 billion, up from $2.8 billion in Q3. In the first quarter of 2022, David Abrams’ Abrams Capital Management held a leading stake in the company, with 2.35 million shares valued at $705.60 million.
Here is what Oakmark Select Fund has to say about Lithia Motors, Inc. (NYSE:LAD) in its Q1 2022 investor letter:
“As is typical during periods of significant volatility, we added a new name to the portfolio. Lithia Motors (NYSE:LAD) is the largest franchised auto dealer group in the United States. The company has a long history of creating shareholder value through best-in-class operations and consistent acquisitions of smaller dealers at attractive returns. There is a long runway for management to continue creating value through such acquisitions. Management believes this will drive earnings per share to more than $50 by 2025, even as car prices return to pre-pandemic levels. Meanwhile, Lithia has a significant opportunity to further accelerate growth through Driveway, its online auto retailing platform. We believe Lithia’s existing nationwide infrastructure provides Driveway with significant competitive advantages in e-commerce, which smaller dealers will struggle to replicate. Driveway is not generating any earnings today, but it could become a major contributor over the next five to seven years. With the stock priced at less than 7x management’s 2025 EPS target and with substantial future growth potential from Driveway, we believe Lithia shares are a bargain today.”
6. Marqeta, Inc. (NYSE:MQ)
Number of Hedge Fund Holders: 39
Marqeta, Inc. (NYSE:MQ) is a California-based company that operates an on-demand open application programming interface platform that issues cards and provides transaction processing services to developers, technical product managers, and entrepreneurs. Soros Fund Management owned more than 1 million Marqeta, Inc. (NYSE:MQ) shares in Q4 2021, worth $17.5 million. The fund disposed of its stake entirely in the first quarter of 2022.
Mizuho analyst Dan Dolev on May 17 cut the price target on Marqeta, Inc. (NYSE:MQ) to $12 from $17 and reiterated a Buy rating on the shares following the Q1 results. After notable de-ratings of stocks, the second half of 2022 “could prove a boon for several companies” in the fintech space, the analyst told investors. He believes the payments sector is attractive for the second half of the year. If the economy holds, accelerating growth rates could lead to positive stock movements for multiple companies in the group, contends the analyst.
Among the hedge funds tracked by Insider Monkey, 39 funds were long Marqeta, Inc. (NYSE:MQ) in the fourth quarter of 2021, up from 20 funds in the third quarter. Mick Hellman’s HMI Capital reported owning a prominent stake in the company in Q1 2022, with 25.6 million shares worth about $283 million.
Although George Soros’ fund sold out of Marqeta, Inc. (NYSE:MQ) in Q1 2022, it held significant stakes in Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Salesforce, Inc. (NYSE:CRM).
Here is what Alger Spectra Fund has to say about Marqeta, Inc. (NYSE:MQ) in its Q4 2021 investor letter:
“Margeta facilitates the implementation of digital payment technologies. It is a Positive Dynamic Change beneficiary in the digital payments industry. We believe as more commerce is conducted digitally, the digitization and transformation of the payments ecosystem is needed, which Margeta seeks to address through its modern payment card issuing platform, providing infrastructure and tools for building configurable payment cards. Margeta offers issuer processor services and acts as a card program manager. Its platform creates customized payment cards that provide innovative payment experiences for their clients’ customers and end users.
Marqeta has emerged as a card issuing platform category leader in many disruptive verticals, including on-demand delivery, alternative lending, expense management, disbursement, digital remittances, and digital banks. Margeta’s solutions are even sought out by large financial institutions to improve their existing offerings and stay competitive with technology-focused new market entrants. Margeta detracted from performance despite achieving strong revenue growth with higher gross profitability and an expanded customer base in the third quarter. We believe the expiration of a lock up period and the company facing tough comparisons resulting from COVID-19 stimulus payments having boosted consumer spending contributed to the underperformance of Marqeta shares. Additionally, the still small footprints within the Margeta revenue base of crypto, truck brokerage and business-to-business clients may take time to scale.”
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Disclosure: None. Billionaire George Soros is Selling These 10 Stocks in 2022 is originally published on Insider Monkey.
