In this article, we discuss the 5 top large-cap stock picks of George Soros. If you want to read our detailed analysis of these stocks, go directly to George Soros Stock Portfolio: Top 10 Large-Cap Stock Picks.
5. IHS Markit Ltd. (NYSE:INFO)
Number of Hedge Fund Holders: 61
IHS Markit Ltd. (NYSE:INFO) is ranked fifth on our list of 10 top large-cap stock picks of George Soros. The firm operates in the business research and consulting industry and is headquartered in London. 13F filings reveal that Soros Fund Management owned 1.3 million shares in the company at the end of the second quarter of 2021 worth $152 million, representing 2.56% of the portfolio.
On July 15, investment advisory Deutsche Bank reiterated a Buy rating on IHS Markit Ltd. (NYSE:INFO) stock and raised the price target to $127 from $123. Sameer Kalucha, an analyst at the advisory, issued the ratings update.
At the end of the second quarter of 2021, 61 hedge funds in the database of Insider Monkey held stakes worth $5.9 billion in IHS Markit Ltd. (NYSE:INFO), up from 54 in the previous quarter worth $4 billion.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and IHS Markit Ltd. (NYSE:INFO) was one of them. Here is what the fund said:
“We ended our campaign in IHS Markit. IHS Markit is a global provider of information services to the financial services, automotive and energy sectors. Since beginning our investment campaign in 2009, we have been attracted to the company’s position relative to the meaningful secular tailwind driving demand for data and analytics to help guide business decisions. The company announced in Q4 it is merging with S&P Global, one of the largest credit ratings agencies globally and a provider of benchmarks, data and analytics to the global capital and commodities markets. We believe the combination provides a good level of cost and revenue synergies which will help drive profit growth, and S&P Global has a solid track record of acquiring and integrating new businesses. However, we exited our position as the combined entity will be well beyond our mid-cap market cap mandate.”
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company. It is placed fourth on our list of 10 top large-cap stock picks of George Soros. Government filings show that Soros Fund Management owned 70,255 shares in the company at the end of June 2021 worth $171 million, representing 2.89% of the portfolio.
On July 28, investment advisory Wedbush maintained an Outperform rating on Alphabet Inc. (NASDAQ:GOOG) stock and raised the price target to $3,424 from $3,127, noting the firm had reported another “stellar” quarter of growth.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 2.9 million shares worth more than $7.3 billion.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) is a Washington-based diversified technology company. It is ranked third on our list of 10 top large-cap stock picks of George Soros. Latest data shows that Soros Fund Management owned 94,604 shares in the company at the end of the second quarter of 2021 worth $325 million, representing 5.48% of the portfolio.
On September 20, investment advisory RBC Capital initiated coverage of Amazon.com, Inc. (NASDAQ:AMZN) stock with an Outperform rating and a price target of $4,150, noting that checks indicated that Amazon advertising was “just getting started”.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Amazon.com, Inc. (NASDAQ:AMZN) with 3.8 million shares worth more than $13 billion.
In its Q1 2021 investor letter, Hayden Capital, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said:
“Amazon (AMZN):We sold our last remaining stake in Amazon this quarter. Amazon was our longest-running investment holding, after having originally purchasing it at the inception of Hayden in 2014, at a price of ~$317.
I gave some details of how Amazon has progressed over these past 6.5 years in last year’s Q2 2020 letter, which partners can find here (LINK). The company has executed amazingly well over this tenure, with revenues up ~3.3x and since our initial purchase, and reported operating income up ~30x over that period.
Generally, I believe there are three reasons to sell an investment:1) we recognize our initial thesis is wrong (sell out as quick as possible), 2) we have a significantly higher returning opportunity to redeploy the capital into (sell-down to fund the new investment), or 3) the company is maturing and hitting the top part of it’s S-curve / business lifecycle, so the business has fewer places to reinvest its capital internally. As such, the future returns will likely be lower than the past. This investment thus becomes a “source of capital” in the future, as we fund earlier-stage investment opportunities.
In the case of Amazon, we decided to sell due to the third scenario. I’m sure Amazon will continue to generate value for shareholders and continue to keep pace with the broader technology sector. However, I’m just not confident it’s as attractive an investment as when we first invested.
With ~51% of US households having an Amazon Prime account (and with very low churn), each of these households continuing to increase their annual spend with Amazon, and few / no real competitors in sight, Amazon is a dominant force that will only continue to accrue value as consumers continue to move from offline to online purchases for their everyday needs. Likewise, the “cash-flow machine” of Amazon Web Services is in a similar position of strength, with AWS now having ~32% market share and continuing to grow at +30% y/y. Because of this, I think Amazon is probably one of the safest investments in the technology sector today.
So why did we decide to sell the investment then? Simply put, Amazon is …”read the entire letter here]
2. D.R. Horton, Inc. (NYSE:DHI)
Number of Hedge Fund Holders: 45
D.R. Horton, Inc. (NYSE:DHI) is placed second on our list of 10 top large-cap stock picks of George Soros. The firm operates as a homebuilding company. It is headquartered in Texas. According to securities filings, Soros Fund Management owned 4.2 million shares in the company at the end of June 2021 worth $385 million, representing 6.49% of the portfolio.
On July 26, investment advisory Wedbush upgraded D.R. Horton, Inc. (NYSE:DHI) stock to Outperform from Neutral and raised the price target to $125 from $94, noting that decline in mortgage rates and a core first time consumer base were growth catalysts for the firm.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Egerton Capital Limited is a leading shareholder in D.R. Horton, Inc. (NYSE:DHI) with 8.3 million shares worth more than $752 million.
1. Liberty Broadband Corporation (NASDAQ:LBRDA)
Number of Hedge Fund Holders: 28
Liberty Broadband Corporation (NASDAQ:LBRDA) is ranked first on our list of 10 top large-cap stock picks of George Soros. The firm operates in the communications services industry and is headquartered in Colorado. According to the latest filings, Soros Fund Management owned 3.9 million shares in the company at the end of the second quarter of 2021 worth $690 million, representing 11.64% of the portfolio.
On August 24, investment advisory Pivotal Research maintained a Buy rating on Liberty Broadband Corporation (NASDAQ:LBRDA) stock with a price target of $267. Jeffrey Wlodarczak, an analyst at the advisory, issued the ratings update.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Eagle Capital Management is a leading shareholder in Liberty Broadband Corporation (NASDAQ:LBRDA) with 9 million shares worth more than $1.5 billion.
In its Q1 2021 investor letter, Alphyn Capital Management, an asset management firm, highlighted a few stocks and Liberty Broadband Corporation (NASDAQ:LBRDA) was one of them. Here is what the fund said:
“Liberty Broadband completed its merger with GCI, thereby collapsing one layer of the double discount to Charter Communications, presenting a good opportunity to trim that position as well.”
You can also take a peek at Why These 10 Stocks Fell on Monday and 10 Penny Stocks With Long-Term Growth Catalysts.
