Below are George Soros’ top 5 stock picks. To read our detailed analysis of George Soros’ investment strategy, his “theory of reflexivity” and his amazing history, go to George Soros’ Top 10 Stock Picks.
5. D.R. Horton, Inc. (NYSE: DHI)
After a stunning performance in 2020, shares of D.R. Horton, Inc. (NYSE: DHI) grew 14% in 2021. It is one of the favorite stocks of George Soros as the Soros Fund Management has been holding a big stake in D.R. Horton since 2019. Soros Fund increased its position by 21% in DHI during the fourth quarter of 2020, making it the fifth-largest stock holding of the 13F portfolio.
D.R. Horton generated 46% revenue growth in the December quarter and the company says its sales order backlog of homes under contract increased 107% to 28,487 homes and 111% in value to $8.9 billion.
4. QuantumScape Corporation (NYSE: QS)
The family office fund has initiated a big position in QuantumScape Corporation (NYSE: QS) during the fourth quarter by purchasing 3.3 million shares, accounting for 5.29% of the overall portfolio. Shares of QuantumScape saw significant volatility since its debut on the New York Stock Exchange in November. Its stock price is currently trading around $63. QuantumScape Corporation develops and commercializes solid-state lithium-metal batteries for electric vehicles.
3. Invesco QQQ ETF (QQQ)
Soros Fund initiated a position in Invesco QQQ ETF (QQQ) during the third quarter and held the position through the fourth quarter. It is the third-largest holding of Soros Fund Management, accounting for 6.68% of the overall portfolio. The price of QQQ rallied 5.51% since the beginning of this year, extending the twelve-month gains to 40%. Invesco QQQ Trust is an exchange-traded fund, which invests in public equity markets of the global region operating across energy, real estate, materials, industrials, consumer discretionary, consumer staples, and health care sectors.
2. Palantir Technologies (NASDAQ: PLTR)
Shares of Palantir Technologies (NASDAQ: PLTR), which was founded by legendary investor and PayPal’s cofounder Peter Thiel, swelled significantly since its debut on New York Stock Exchange. Soros Fund has converted its early investment in Palantir into publicly traded shares in September and it is the second-largest stock holding of Soros Fund Management, according to the latest filing.
Guardian Fund, which returned 52% for 2020, believes Palantir Technologies has strong growth prospects ahead. Here is what Guardian Fund stated:
“In October, we bought a stake in Palantir. Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companiesto make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir has a long runway of growth ahead.”
1. Liberty Broadband Corporation (NASDAQ: LBRDK)
The communications services provider Liberty Broadband Corporation (NASDAQ: LBRDK) is the largest stock holding of Soros Fund Management, accounting for 15.80% of the overall portfolio. Shares of Liberty Broadband underperformed in 2020 and extended the downtrend in 2021. George Soros has been holding a position in Liberty Broadband since 2016.
Andvari Associates, which returned 31% for 2020, highlighted few stocks including Liberty Broadband in Q4 investor letter. Here is what Andvari Associates stated:
“The most notable event in Andvari portfolios was one holding, Liberty Broadband, acquiring another holding, GCI Liberty. This was an all-share transaction. Andvari supported it. Broadband is now over 20% of Andvari’s assets under management.
Like Broadband’s management, we believe the transaction creates meaningful value. First, the two companies generate immediate savings from duplicative public company and overhead costs. Most importantly, the transaction means Broadband has a 25% stake in Charter Communications (the second-largest cable operator in the U.S. by subscribers) and also owns 100% of GCI.
GCI is Alaska’s largest communication company with over $900 million in annual revenues and capable of producing $150 million in free cash flow. With access to a cash producing asset in GCI, Broadband has greater flexibility to deploy capital. In fact, after the announcement of the deal last August, Broadband increased its share repurchase authorization from $200 million to $1.2 billion. Broadband remains an attractive investment and Andvari looks forward to many more years as shareholders.”
You can also take a peek at 10 Best EV Stocks to Buy According to Cathie Wood and 12 Most Influential Entrepreneurs in America.
