In this article, we discuss the top 10 stock picks of billionaire George Soros.
George Soros is a Hungarian-American billionaire and businessman who launched Soros Fund Management in 1970. Soros Fund Management, which is now a family office, was created as a hedge fund in New York for managing money for clients. George Soros has a Q2 stock portfolio worth $5.6 billion, compared to $6.6 billion in the prior quarter. Soros’ investment philosophy consists of watching the currency swings and commodity prices closely, in addition relying on macro and market analysis. He is also involved heavily in American politics.
The 13F filings for the second quarter of 2022 reveal that Soros Fund Management acquired 49 new stocks, made additional purchases in 43 stocks, sold out of 51 securities, and reduced holdings in 18 equities. The fund’s investments are concentrated in the real estate, communications, finance, healthcare, consumer discretionary, and information technology sectors. Some of the top stock picks of George Soros include Rivian Automotive, Inc. (NASDAQ:RIVN), Amazon.com, Inc. (NASDAQ:AMZN), and D.R. Horton, Inc. (NYSE:DHI).
Our Methodology
We selected the top 10 stock picks from George Soros’ stock portfolio as of the end of the second quarter of 2022 for this analysis. Insider Monkey’s database of 895 elite hedge funds tracked as of the end of the second quarter of 2022 was used to assess the hedge fund sentiment around the securities.
George Soros of Soros Fund Management
George Soros Stock Portfolio: Top Stock Picks
10. Bowlero Corp. (NYSE:BOWL)
Number of Hedge Fund Holders: 18
Soros Fund Management’s Stake Value: $102,443,000
Bowlero Corp. (NYSE:BOWL) is a Virginia-based company that operates bowling entertainment centers under the AMF, Bowlmor Lanes, and Bowlero brand names. In Q2 2022, George Soros’ fund owned 9.6 million shares of Bowlero Corp. worth $102.4 million, representing 1.82% of the total 13F securities. The hedge fund boosted its stake in Bowlero Corp. by 3% in the June quarter.
On October 27, Bowlero Corp. announced that it has bought two additional bowling centers in California and Iowa, bringing its total to 17 this year. For FY 2023, the company entered into nine definitive agreements, and concluded seven acquisitions.
Oppenheimer analyst Ian Zaffino initiated coverage of Bowlero Corp. with an Outperform rating and a $16 price target. Bowlero Corp., the biggest operator of bowling centers in North America, it is about seven times larger than the number two player, and “represents an interesting investment opportunity,” the analyst said. The rest of the industry is very fragmented and Bowlero Corp.’s emphasis on “bowling first”, its diverse and sophisticated customer base, and proprietary operating system give it market-leading margins, the analyst added.
According to Insider Monkey’s data, 18 hedge funds were bullish on Bowlero Corp. at the end of June 2022, compared to 23 funds in the prior quarter.
In addition to Rivian Automotive, Inc., Amazon.com, Inc., and D.R. Horton, Inc., Bowlero Corp. is one of the top stock picks from the George Soros stock portfolio.
9. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Soros Fund Management’s Stake Value: $103,564,000
Salesforce, Inc. (NYSE:CRM) is a California-based company offering customer relationship management technology to companies and individuals worldwide. Soros Fund Management boosted its Salesforce, Inc. stake by 139% in Q2 2022, holding 627,509 shares worth $103.5 million. Salesforce, Inc. is one of the top stock picks from the George Soros stock portfolio.
On November 2, Macquarie analyst Sarah Hindlian-Bowler took over coverage of Salesforce, Inc. with an Outperform rating and a $210 price target. The analyst believes the shares are undervalued and expects Salesforce, Inc. to end its multiple contraction with growth and margins supported by its Cloud Suite.
According to Insider Monkey’s data, 116 hedge funds were long Salesforce, Inc. at the end of June 2022, compared to 114 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 15.6 million shares worth $2.6 billion.
Vulcan Value Partners made the following comment about Salesforce, Inc. in its Q3 2022 investor letter:
“Salesforce, Inc. is a leading customer relationship management (CRM) platform with a broad suite of products that help its customers with sales, service, marketing, and analytics. Salesforce has steadily gained market share within its addressable market, that itself is growing 13% per year. Salesforce has used both organic innovation and selective M&A to expand its menu of products. This has improved penetration as customers increase the number of products, or clouds, they buy from Salesforce. As a customer moves from one Salesforce cloud to two clouds, annual recurring revenue (ARR) increases 3X on average. With 3 clouds, ARR is 9X higher vs. 1 cloud, and we believe this exponential growth dynamic will increase with each successive cloud. In addition to generating recurring revenue for Salesforce, each incremental cloud helps Salesforce increase its position within the daily operations of its customers, making its products stickier. Long term, we believe these secular trends will continue, and that Salesforce will continue to gain market share, expand margins, and innovate to address the needs of its customers.”
8. Aramark (NYSE:ARMK)
Number of Hedge Fund Holders: 27
Soros Fund Management’s Stake Value: $110,770,000
Aramark (NYSE:ARMK) is a Pennsylvania-based company that offers food, facilities, and uniform services to education, healthcare, business, sports, leisure, and corrections clients in the United States and internationally. Securities filings for Q2 2022 reveal that George Soros had 3.6 million shares of Aramark worth $110.7 million, representing 1.97% of the total 13F portfolio.
On November 8, Aramark declared a quarterly dividend of $0.11 per share, in line with previous. The dividend is payable on December 5, to shareholders of the company as of November 22. The dividend yield on November 8 came in at 1.24%.
Jefferies analyst Stephanie Moore assumed coverage of Aramark on October 25 with a Hold rating and a price target of $36, down from $40. The analyst believes Aramark’s turnaround strategy is seeing positive results, but her Hold rating is due to valuation and a view that the uniform business spin is not a short-term catalyst as its expected timing is during spring/summer 2023.
According to Insider Monkey’s Q2 data, 27 hedge funds were bullish on Aramark, compared to 25 funds in the prior quarter. Thomas Steyer’s Farallon Capital is the leading position holder in the company, with 16 million shares worth $490.3 million.
7. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 153
Soros Fund Management’s Stake Value: $115,882,000
Alphabet Inc. (NASDAQ:GOOG) has been part of the George Soros stock portfolio since the last quarter of 2015, with minor breaks over the years. In the second quarter of 2022, Soros held 1.06 million shares of Alphabet Inc. worth $115.8 million, representing 2.06% of the total holdings.
On October 27, Alphabet Inc. announced that it had acquired AI avatar startup Alter for about $100 million. Alter helps creators and brands develop and express their virtual identity. The AI startup will enable Alphabet Inc. to improve and advance its content offerings.
Oppenheimer analyst Jason Helfstein on October 26 maintained an Outperform rating on Alphabet Inc. but trimmed the price target on the shares to $135 from $155 to reflect lower 2023 estimates on softer first half of the year and slower headcount growth.
According to Insider Monkey’s data, 153 hedge funds were bullish on Alphabet Inc. at the end of Q2 2022, compared to 160 funds in the earlier quarter. Chris Hohn’s TCI Fund Management is a prominent position holder in the company, with 2.5 million shares worth $5.4 billion.
FPA made the following comment about Alphabet Inc. in its Q3 2022 investor letter:
“The share prices of both Meta and Alphabet Inc. have declined significantly over the past twelve months. We believe this is due to a combination of a weakening ad market, depreciation of foreign currencies, and increased competitive intensity. On the positive side, we anticipate each company to continue to generate significant amounts of free cash flow even during these challenging times, which we expect to be redeployed into a combination of growth projects and share buybacks.”
6. Biohaven Ltd. (NYSE:BHVN)
Number of Hedge Fund Holders: 58
Soros Fund Management’s Stake Value: $182,866,000
Biohaven Ltd. (NYSE:BHVN) is a Connecticut-based clinical-stage biopharmaceutical company, focused on discovering and developing therapies for neurological and neuropsychiatric diseases in the United States. Biohaven Ltd. was a new addition to the George Soros stock portfolio in Q2 2022, with the hedge fund buying 1.25 million shares worth $182.8 million, representing 3.25% of the total 13F securities.
On October 21, Biohaven Ltd. priced an upsized public offering of 25 million of its common shares, at a public offering price of $10.50 per common share. The offering closed on October 25, and the company expects to use the net proceeds received for general corporate purposes.
Cowen analyst Ken Cacciatore on November 7 maintained an Outperform rating on Biohaven Ltd. but slashed the firm’s price target on the shares to $25 from $165 following its spin off. The analyst said the target is based mainly on BHV-7000 in epilepsy, but there is a potential for upside via the emerging pipeline.
According to Insider Monkey’s Q2 data, 58 hedge funds were long Biohaven Ltd., compared to 41 funds in the preceding quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is the largest stakeholder of the company, with more than 3 million shares worth $442.8 million.
Like Rivian Automotive, Inc., Amazon.com, Inc., and D.R. Horton, Inc., Biohaven Ltd. is one of the top stock picks of George Soros.
Here is what Baron Health Care Fund has to say about Biohaven Ltd. in their Q1 2021 investor letter:
“Biohaven Pharmaceutical Holding Company Ltd. is a biotechnology company dedicated to neurologic drug discovery. It launched its lead asset, migraine medication Nurtec, last year, and the company is transitioning towards profitability. Shares declined when Biohaven issued a secondary offering in March that took investors by surprise and seemed early in relation to an expected second indication for Nurtec in the prophylactic prevention of migraine, which expands its market. We exited our position.”
5. D.R. Horton, Inc. (NYSE:DHI)
Number of Hedge Fund Holders: 44
Soros Fund Management’s Stake Value: $197,067,000
D.R. Horton, Inc. is a Texas-based homebuilding company that primarily constructs and sells single-family detached homes, townhomes, duplexes, and triplexes. The George Soros stock portfolio held nearly 3 million shares of D.R. Horton, Inc. in the second quarter of 2022, worth $197 million and representing 3.5% of the total 13F securities.
On October 21, Raymond James analyst Buck Horne downgraded D.R. Horton, Inc. to Outperform from Strong Buy with a price target of $77, down from $103. The downgrade reflects the analyst’s more cautious outlook on the housing market as mortgage rates have destroyed affordability. He remains constructive on D.R. Horton, Inc. in this environment as the industry’s most cost-efficient producer of single-family housing.
According to Insider Monkey’s data, 44 hedge funds were long D.R. Horton, Inc. at the end of June 2022, compared to 52 funds in the preceding quarter. John Armitage’s Egerton Capital Limited is the leading position holder in the company, with 7.6 million shares worth $504 million.
Here is what Third Avenue Management specifically said about D.R. Horton, Inc. in its Q2 2022 investor letter:
“D.R. Horton, Inc. is the largest homebuilder in the US by volume (the company sold more than 90k homes in the past year) with a well-recognized focus on delivering quality product at the entry-level price point (its average selling price is less than $400k) and market-leading positions in key Sunbelt markets.
While the near-term outlook for DR Horton remains uncertain given the adjustments occurring in the US residential markets, the medium-to-long-term prospects for volume-based homebuilders with super-strong balance sheets and scale advantages continue to be promising in Fund Management’s view. More specifically, (i) residential inventories remain around record-low levels in most major markets when gauged by aggregate units available (see chart below), (ii) demand for single-family residences seem to have multiple secular drivers as the largest generation in US history (the “millennial cohort”) enters its prime home buying years and desires more space not only due to “life events” but also “remote” and “hybrid” working arrangements, and (iii) significant inflation in rental rates for multi-family units in urban areas has left the rent-to-own proposition for single-family homes in suburban areas in a compelling range (particularly in the Sunbelt region which is experiencing outsized job growth and wage growth relative to broader national figures).
In Fund Management’s view, the two industry participants that seem most likely to take part in this shift include DR Horton and Lennar Corp. (a long-held position in the Fund). In conjunction, these two “blue-chip builders” now account for approximately 10% of the Fund’s capital, as well as roughly one out of every five new homes built in the Sunbelt. They would also qualify under Third Avenue Founder Marty Whitman’s “Safe and Cheap” maxim as both companies are nearly “net-cash” (i.e., more cash than debt) with common stocks trading at less than five times trailing earnings, on average.”
4. American Campus Communities Inc (NYSE:ACC)
Number of Hedge Fund Holders: 35
Soros Fund Management’s Stake Value: $201,469,000
American Campus Communities Inc (NYSE:ACC) is a publicly traded REIT that owns multiple student housing properties. On August 4, American Campus Communities Inc announced that its stockholders approved the acquisition of the company by Blackstone Real Estate Income Trust. In accordance with the terms of the merger agreement, an amount in cash equal to $65.47 per share, will be paid for American Campus Communities Inc.
Securities filings for the second quarter of 2022 reveal that George Soros added American Campus Communities Inc to his portfolio by purchasing 3.12 million shares worth $201.5 million, representing 3.58% of the total securities.
According to Insider Monkey’s second quarter database, 35 hedge funds were bullish on American Campus Communities Inc, compared to 20 funds in the prior quarter. Dmitry Balyasny’s Balyasny Asset Management is a significant position holder in the company, with nearly 2 million shares worth $128 million.
Here is what Baron Discovery Fund has to say about American Campus Communities, Inc. in its Q1 2022 investor letter:
“We initiated a new position in American Campus Communities, Inc., the nation’s largest developer, owner, and manager of high-quality student housing communities. The company’s 166 properties (approximately 112,000 beds) are located either on-campus or pedestrian-to-campus (94% of the company’s net operating income comes from properties that are within 1¤2 mile of campus) in submarkets with high barriers to entry. Emerging from a difficult COVID environment when many students took classes virtually and were not on campus, the company is now poised to benefit from a much more favorable fundamental backdrop. Over the next several years, we expect strong demand driven by growing student enrolment. Combined with limited new supply deliveries since many new developments were canceled during COVID, the net result is significant growth in occupancy, rent, and cash flow. In addition to the organic growth, we expect in the next few years, the company also has several greenfield developments that are underway and are expected to supplement growth as they open. As it relates to valuation, currently the company is trading at a discount to both private market values for comparable properties and to the publicly traded multi-family operators. We believe this valuation discrepancy will narrow as the company executes on its business plan. Following the completion of the quarterly letter, American Campus Communities agreed to be acquired by Blackstone for $65.47 per share.”
3. Liberty Broadband Corporation (NASDAQ:LBRDA)
Number of Hedge Fund Holders: 27
Soros Fund Management’s Stake Value: $202,352,000
Liberty Broadband Corporation (NASDAQ:LBRDA) is a Colorado-based communications company that operates through GCI Holdings and Charter segments. On November 4, Liberty Broadband Corporation reported its Q3 results, announcing earnings per share of $2.15 and a revenue of $248 million, outperforming Wall Street estimates by $0.48 and $3.91 million, respectively.
According to the 13F filings for the second quarter of 2022, the George Soros stock portfolio had 1.75 million shares of Liberty Broadband Corporation, worth $202.35 million and representing 3.6% of the total holdings.
On May 10, Deutsche Bank analyst Bryan Kraft maintained a Buy rating on Liberty Broadband Corporation but lowered the price target on the shares to $158 from $196 after the Q1 results.
Among the hedge funds tracked by Insider Monkey, 27 funds reported owning stakes worth $202.35 million in Liberty Broadband Corporation, compared to 26 funds in the prior quarter. Boykin Curry’s Eagle Capital Management is the largest stakeholder of the company, with 8.30 million shares worth $960.2 million.
Alphyn Capital made the following comment about Liberty Broadband Corporation in its Q3 2022 investor letter:
“In retrospect, I wish I had cut the position in Liberty Broadband Corporation more aggressively last quarter. Fears of fixed wireless and fiber competition have weighed heavily on Charter and Liberty’s share prices. Tom Rutledge’s unexpected early retirement from the CEO role has not helped matters.
I believe the sentiment is now overly pessimistic, and the valuation once again attractive. Revenue growth from broadband ads will likely stall as fixed wireless access programs take a bite out of cable subscribers over the next five years. 4 However, Charter has a fast-growing mobile phone business through an MVNO (mobile virtual network operator) agreement with Verizon. Given its cost-effective access to Verizon’s mobile telephony infrastructure, it provides a branded mobile phone service to retail customers at competitive rates. For example, Unlimited pricing starts at $29.99/month, including taxes and fees, vs. $35-55/month plus taxes and fees for Verizon’s plans.
Wireless generates approximately $725m in revenues for Charter per quarter, around 6% of the total, and is growing 40% per year. Should this continue, Wireless could return Charter to mid-single-digit revenue growth and “drive meaningful EBITDA for Charter,” as revenues scale over a low cost base. With approximately 25m non-Charter potential wireless customers within the area it serves, there is plenty of room for growth.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 252
Soros Fund Management’s Stake Value: $212,898,000
Amazon.com, Inc. has been part of the George Soros stock portfolio since the last quarter of 2010, with a few breaks over the years. In Q2 2022, the hedge fund elevated its stake in Amazon.com, Inc. by 2735%, holding more than 2 million shares worth approximately $213 million, representing 3.79% of the total 13F securities.
On November 2, Tigress Financial analyst Ivan Feinseth reiterated a Buy recommendation on Amazon.com, Inc. but lowered the firm’s price target on the shares to $192 from $232. The analyst said the new price target reflects a re-rating of valuation and growth rate adjustments. He sees further growth and share price gains and views the recent pullback as a “major” buying opportunity.
According to Insider Monkey’s data, 252 hedge funds held stakes worth $30 billion in Amazon.com, Inc. at the end of June 2022, compared to 271 funds in the prior quarter worth $48 billion. Ken Fisher’s Fisher Asset Management featured as a significant position holder in the company, with 48.6 million shares valued at $5.16 billion.
Alger Capital made the following comment about Amazon.com, Inc. in its Q3 2022 investor letter:
“Amazon.com, Inc. is a well-known online retailer and cloud computing leader. The company’s amazon web services business provides utility-scale cloud offerings that facilitate corporate America’s transition to digital systems. Shares outperformed during the quarter as investors were encouraged by strong second-quarter performance despite a challenging macroeconomic environment. Moreover, the company’s retail segment was resilient and avoided discounting inventory like some major retailers did. Revenues for the company’s cloud computing segment, amazon web services (AWS), grew faster than analysts’ estimates during the quarter due to continuing corporate demand for digitization. As a result, management provided better-than-expected forward guidance.”
1. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 35
Soros Fund Management’s Stake Value: $459,086,000
Rivian Automotive, Inc. is a California-based company that designs, develops, manufactures, and sells electric vehicles and accessories. Securities filings for the second quarter of 2022 revealed that the George Soros stock portfolio held 17.8 million shares of Rivian Automotive, Inc., worth $459 million and representing 8.17% of the total 13F securities. Rivian Automotive, Inc. is the largest holding in the Soros portfolio.
On November 2, Mizuho analyst Vijay Rakesh said Rivian Automotive, Inc.’s vehicle recall is “relatively minor” and that its manufacturing lines have already been updated. He noted that the headlines are “worse than reality” and maintained a Buy rating on Rivian Automotive, Inc. with a $65 price target.
According to Insider Monkey’s data, 35 hedge funds were bullish on Rivian Automotive, Inc. at the end of June 2022, compared to 29 funds in the prior quarter. Philippe Laffont’s Coatue Management is the largest position holder in the company, with 18.8 million shares worth $486 million.
Here is what Baron Fifth Avenue Growth Fund has to say about Rivian Automotive, Inc. in its Q2 2022 investor letter:
“Rivian Automotive, Inc. designs, manufactures, and sells consumer and commercial electric vehicles. Shares of Rivian declined 48.2% in the second quarter as investors continued rotating out of long-duration assets and have become increasingly concerned about capital intensity and cash burn.
At the same time, Rivian continues to be impacted by supply chain issues which are causing delays in its production ramp. Rivian is addressing those challenges by diversifying its supply chain to alleviate shortages while also consolidating the number of variants in development to reduce cash burn (the company guided that current cash will be enough to support the company’s future platform launch ‘R2’ in 2025). Rivian recently reported stronger-than-expected second quarter production numbers while reiterating its annual guidance of producing 25,000 units.
As semiconductor shortages ease, we believe that the company will be able to rapidly ramp its production. We retain conviction in the shares given management’s vision, Rivian’s product positioning, the company’s relationship with Amazon.com, and its strong balance sheet. As of the end of the first quarter, Rivian had $17 billion of cash and cash equivalents, which will help it overcome the current challenges while taking advantage of the long-term opportunity as the market transitions to electric vehicles.”
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