George Soros is a hedge fund guru, known for stellar success of his Quantum Fund. A mere $1000 invested in 1969 when Soros established the Quantum Fund would have been worth $4 million by the year 2000. During that time he achieved an average 32% annual return. We like to track Soros because of his macro-sense of world economy.
Soros Fund Management LLC holds positions in over 600 companies, with a total portfolio value of $6.95 billion. A third of the fund is invested in oil & gas, since Mar. 2010). His recent largest purchases include:
|Select Sector SPDRFinancial||inv.||XLF||$172.8 Mil||2.49%|
|Ace Ltd.||Insurance||ACE||$75.4 Mil||1.08%|
George Soros wrote his latest article Reforming a Broken Mortgage System. He said we do not have to wait years to reform Fannie Mae & Freddie Mac—government -sponsored-enterprises. Soros stated the GSEs “blew-up” $400 billion tax-payer’s money. The innate problem was the clash of irreconcilable public and private interests. “What needs to be done is clear: The GSEs’ mortgage insurance function must be separated from the mortgage financing…mortgage insurance should be run as a government agency…But mortgage financing should revert back to the private sector.”
Anatomy of a Crisis: (Speech Apr. 2010) George Soros pointed out that economics cannot rely solely on experience through time. We cannot create “Euclidian rules” that will predict our future. “The meltdown of the financial system in 2008 forces us to go back to the drawing board and look for a more realistic approach. I believe that we have to start with recognizing a fundamental difference between human and natural phenomena. [This is a perfect example of reflexivity, where human and natural phenomenons are not independent from each other.] This means that financial markets should not be treated as a physics laboratory but as a form of history. The course of events is time-bound and one-directional. Predictions and explanations are not reversible. Some timelessly valid generalizations can serve to explain events but not to predict them.” The crisis was created by thinking “the prevailing trend in the super-bubble was also the ever-increasing use of credit and leverage; the misconception was the belief that markets correct their own excesses.”
WEATHERFORD INTERNATIONAL, LTD. (WFT)Oil drilling service and equipment provider, Weatherford Int’l (WFT) has a market cap of $12.3 billion; its shares were traded at $16.72 with P/E ratio of 32.2 and P/S ratio of 1.4. It has an average revenue growth of 16.8% over the past 10 years.
The company reported lost $40 million or $0.05 a share in 1Q, compared to earnings of $164.8 million or $0.23 a share same period last year. Revenue increased 3.6% to $2.34 from $2.26 billion. The company faced a large fine from Venezuelan Bolivar, which cost $40 million.
George Soros increased his holdings in Weatherford Int’l 50% to 7,384,798 shares, which is 1.9% of his $6.95 billion portfolio.
Precision Castparts Corp (PCP)Precision Castparts Corp. is a worldwide manufacturer of industrial metal components and products. It has a market cap of $18.9 billion; its shares were traded at $133.50 with P/E ratio of 20 and P/S ratio of 3.2. It has an average revenue growth of 19.4% over the past 10 years.
Precision Castparts presented their business update in Aviation, Transportation, and Defense Conference of 2010. Third quarter earnings declined to $232.9 million, or $1.64 per share. The company buys 49% stake in China’s YangZhou Chengde Steel Tube Company.
George Soros increased his holdings in Precision Castparts to 17,100 shares, which is 0.03% of his $6.95 billion portfolio.
PattersonUTI Energy Inc. (PTEN)PattersonUTI Energy Inc. Oil service company Patterson has a market cap of $2.4 billion; its shares were traded at around $14.72 with a P/E ratio of 28.9 and P/S ratio of 1. The dividend yield Patterson stocks is 1.4%. The company had an annual average earning growth of 26% over the past 10 years.
Patterson’s CEO James Wiltz is retiring April 2010. The company reports drilling activity: 146 drilling rigs in operation—138 rigs in the US & 8 in Canada. Crude oil sits still at $82 per barrel. Patterson lost $18.2 million or $0.12 for 4Q, compared to earnings of $79.5 million or $0.52 same period a year ago. Revenue lowered to $213.6 million from $531.5 million.
For the 3Q ending in July 2009, Patterson reported income of $45 million, or $0.38 per share compared to $46 million or $0.39 per share in prior year. Revenue increased 6% to $790 million comparing those periods.
George Soros bought 321,500 shares of new holdings in Patterson, which is 0.07% of his $6.95 billion portfolio.
Immucor Inc. (BLUD)Immucor is an international in vitro diagnostic company dedicated to automating manual processes in the hospital/donor laboratory. Immucor Inc. has a market cap of $1.5 billion; its shares were traded at around $21.46 with a P/E ratio of 18.7 and P/S ratio of 4.9. Immucor Inc. had an annual average earning growth of 46.8% over the past 10 years. GuruFocus rated Immucor Inc. the business predictability rank of 4-star.
The company reported earnings of $20.1 million or $0.28 a share for 3Q, compared to $19.5 million or $0.27 a share same period in 2009. Revenue increased 7% to $80.5 million from $75.3 million. Immucor Inc. reported 2Q profit of $19.7 million, or $0.28 a share, from $17.3 million, or $0.24 a share, in the year-ago period. Revenue increased to $82.6 million from $73 million in that same period. The company announced Dr. Paul Mintz will be joining its board of directors.
George Soros owns 51,400 shares as of 12/31/2009, an increase of 115.06% from the previous quarter. This position accounts for 0.01% of the $6.95 billion portfolio of Soros Fund Management LLC.
Google Inc. (GOOG)Google is a public and profitable company focused on search services. Google Inc. has a market cap of $173.95 billion; its shares were traded at around $547.06 with a P/E ratio of 24.9 and P/S ratio of 7.4. Google Inc. had an annual average earning growth of 65.7% over the past 10 years.
Google recently purchased Agnilux in Silicon Valley for an undisclosed price. According to NYT, Agnilux was formed by discontent employees who worked on hardware for the Apple tablet. Google spent $1.4 million in 1Q to lobby against censorship.
George Soros owns 4,100 shares as of 12/31/2009, an increase of 10.81% from the previous quarter. This position accounts for 0.04% of the $6.95 billion portfolio of Soros Fund Management LLC.
To check the complete list of Top Growth Companies of George Soros, please go to http://www.gurufocus.com/holdings.php?GuruName=George+Soros&tab=growth