George Soros 2022 Portfolio: 5 Value Stock Picks

1. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)

Soros Fund Management’s Stake Value: $6,544,000

Percentage of Soros Fund Management’s 13F Portfolio: 0.09%

Number of Hedge Fund Holders as of December 31: 33

PE Ratio (TTM): 1.35

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is an Israeli cargo shipping company and is considered one of the top 20 global carriers, headquartered in Norfolk, Virginia.

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) stock can be considered a bet on the shipping industry, which is under heavy pressure as ports are backlogged, resulting in significant supply chain disruptions across the globe. China is responsible for 12% of global trade. Once the COVID-19-related restrictions are eased, the supply-chain-related issues are expected to subside. According to experts, the value of goods facing disruption stands at around $22 trillion. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is a stock with a single-digit P/E ratio and a double-digit earnings growth, which makes it a deep value stock.

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) was mentioned in the Q2 2021 investor letter of Evermore Global Advisors. Here’s what the investment management firm said:

“ZIM Integrated Shipping Services (ZIM) was the largest contributor to the Fund’s performance during the second quarter. With a market cap of $5.2 billion, ZIM is an Israel-based containership operator that had its initial public offering on the New York Stock Exchange this past January. As a reminder, we discussed ZIM at length in the Q1 2021 quarterly commentary as one of the new investments that we initiated during that period.

There were several notable developments during the second quarter. Given the company’s unique asset light business model and targeted, global niche approach, ZIM continued to generate exceptionally strong cash flows. ZIM ended the period with approximately $1.25 billion in cash and about $915 million in net debt. Due to the strong operational performance, the company further strengthened its balance sheet by redeeming its Series 1 and Series 2 unsecured notes due in 2023. With the early redemption of the unsecured notes, ZIM was no longer subject to certain dividend restrictions, and it declared a special dividend of $2 per share, which will be payable on Sept 15th (goes ex on August 24th). Lastly, management revised its 2021 fullyear EBITDA guidance from $1.4 – 1.6 billion to $2.5 – $2.7 billion, which was a sizeable increase compared to the levels set last March. To that end, we continue to have high conviction in our position in ZIM.”

You can also take a peek at the 7 Best Stocks to Buy Now According to Bill Ackman and 10 LNG Shipping Stocks to Buy Now.

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