George Soros’ Soros Fund Management has opened a new position in Oclaro, Inc. (NASDAQ:OCLR). According to the 13G Form filed with the U.S. Securities and Exchange Commission, the investment firm’s stake amounts to 12.05 million common shares, representing 9.95% of the company’s outstanding stock. In its last 13F filing, Mr. Soros’ fund also disclosed new stakes in LyondellBasell Industries NV (NYSE:LYB), Endo International plc (NASDAQ:ENDP), LendingClub Corp (NYSE:LC), and Allergan, Inc. (NYSE:AGN).
Soros Fund Management was launched in 1969 by George Soros, the 35th richest man on the planet according to Forbes. In addition to boasting an estimated net worth of $14.2 billion, Mr. Soros founded one of the most successful and profitable hedge funds in the U.S., which delivered on average 20% in annual returns over a 40-year period. In 1992, Soros became known as “the Man Who Broke the Bank of England”, when he made $1 billion by betting against the British Pound. According to its last 13F filing, his fund’s equity portfolio is highly diversified and has a market value of $9.16 billion, down from $13.40 billion last quarter.
Soros Fund Management recently disclosed a new holding in Oclaro, Inc. (NASDAQ:OCLR), whose shares have lost around 9.5% year-to-date. Following this transaction, the hedge fund has become the company’s largest shareholder among the funds we track, thus taking a very bullish stance towards the undervalued stock. Despite volatile share prices, the stock backed by Mr. Soros reported better-than-expected earnings for the second quarter of fiscal year 2015. Although it posted a loss of $0.11 per share, that beat the average earnings consensus estimate of -$0.13 by $0.02. Although Oclaro, Inc. (NASDAQ:OCLR) also reported higher revenue than previously anticipated and now has the backing of George Soros, analysts at Zacks remain neutral regarding the company.
LyondellBasell Industries NV (NYSE:LYB) was one of the new positions disclosed by Soros Fund Management in its last 13F filing and is also one of the firm’s top picks. The position amounts to 2.83 million shares and accounts for 2.46% of the fund’s equity portfolio. Furthermore, the company is also backed by David E. Shaw’s D.E. Shaw, which owns 9.69 million shares, following a 43% increase to its exposure last quarter. Andreas Halvorsen’s Viking Global was also betting on LyondellBasell Industries NV (NYSE:LYB), disclosing a position of 4.04 million shares last quarter. Investing in this stock has proven to be wise so far, as share prices have already gained 15% year-to-date.
Last quarter, Mr. Soros’ fund initiated a stake in Endo International plc (NASDAQ:ENDP) by acquiring 1.75 million shares. This stock has already gained 17% year-to-date and is backed by numerous institutional investors. Larry Robbins’ Glenview Capital for example holds 6.85 million shares, while Jacob Gottlieb’s Visium Asset Management owns 5.70 million shares. Furthermore, recent expansion efforts, such as the acquisition of Auxilium Pharmaceuticals, along with third quarter financial results that beat estimates, have inspired a bullish feeling amongst Endo International plc (NASDAQ:ENDP)’s shareholders.
Soros Fund Management also entered a new position in LendingClub Corp (NYSE:LC) with the purchase of 4.50 million shares. In 2014, the stock gained almost 8%, and while share prices are down more than 4% year-to-date, the equity’s value has grown by 26% over the past month. Investors’ excitement was fueled by the company’s newest partnerships with Google Inc (NASDAQ:GOOG) and Alibaba Group Holding Ltd (NYSE:BABA). The deal with the Chinese eCommerce giant will see LendingClub Corp (NYSE:LC) provide financing for American small businesses that buy from Chinese suppliers.
Finally, Soros Fund Management also disclosed a new holding in Allergan, Inc. (NYSE:AGN) last quarter, which amounted to 494,800 shares. The stock has gained almost 9% year-to-date, after growing by more than 91% in 2014, and is one of Bill Ackman’s top bets. His fund Pershing Square owns 26.64 million shares, accounting for 35% of its equity portfolio, and making it the company’s largest institutional investor. Furthermore, Allergan, Inc. (NYSE:AGN) is set to be acquired by Actavis plc (NYSE:ACT) in a $66 billion deal that is set to be completed in the second quarter of 2015. When the agreement was announced in November, Mr. Soros was smart to add Allegan to his fund’s equity portfolio, as the combination with Actavis is set to result in the creation of the world’s largest pharmaceutical company.
Disclosure: None
