We recently compiled a list of the Billionaire George Soros’ Long-Term Stock Picks. In this article, we are going to take a look at where Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) stands against George Soros’ long-term stock picks.
George Soros is one of the most influential figures in finance, philanthropy, and global affairs. As the founder of Soros Fund Management and the Open Society Foundations, Soros has achieved monumental success as a hedge fund manager while using his wealth to champion democratic values, human rights, and social causes worldwide. Soros was born in Hungary during World War II, and his family survived Nazi occupation by securing false identities and hiding from persecution. In 1947, Soros fled Hungary and moved to England, where he studied at the London School of Economics. After graduating in 1952, Soros worked in various merchant banks before moving to the United States.
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Soros began his career in finance in New York City, where he gained experience in arbitrage and securities trading. In 1970, he founded Soros Fund Management, which later became the Quantum Fund, one of the most successful hedge funds in history. Between 1970 and 2000, the Quantum Fund generated an average annual return of over 30%, making it one of the best-performing funds in history. In 1992, Soros became famous as the man who broke the Bank of England. He bet against the British pound, anticipating that it would be devalued due to economic pressures. His position netted him a profit of $1 billion in a single day, cementing his status as a legendary investor. As of the end of the third quarter of 2024, his net worth is estimated at $7.2 billion. The 13F portfolio of his hedge fund is worth more than $6.9 billion.
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For this article, we selected stocks by combing through the 13F portfolio of Soros Fund Management at the end of the third quarter of 2024. Only the companies that have been in the 13F portfolio of the fund consistently for the past three years were selected. These stocks are also popular among other hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A luxurious cruise ship overlooking a stunning horizon, highlighting the variety of its itineraries.
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
Number of Hedge Fund Holders: 33
Soros Fund Management’s Stake: $31.4 million
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) operates as a cruise company, offering dining, accommodations, entertainment, family cruising, spas, casinos, golf, travel protection, and hotel packages. This company emerges as a prime investment opportunity for several reasons. First and foremost, as per the reports for the third quarter of 2024, generated total revenue was $2.8 billion, an 11% increase compared to the same period in 2023 on 4% capacity growth. GAAP net income was $474.9 million, a 37% increase compared to the third quarter of 2023, with EPS increasing $0.24, or 34%, to $0.95. This demonstrates that the performance was driven by strong revenue growth and continued execution of cost reductions and efficiencies, which offset a $0.06 per share negative impact from foreign exchange rates in the quarter.
Overall NCLH ranks 6th on our list of George Soros’ long-term stock picks. While we acknowledge the potential of NCLH as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than NCLH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
