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.”
CHIMERA INVESTMENT CORP COMMON STOCK (CIM)Chimera Investment Corporation are a newly-formed specialty finance company that will invest in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes and intends to elect and qualify to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Chimera Investment Corp Common Stock has a market cap of $2.63 billion; its shares were traded at around $3.93 with a P/E ratio of 8.6 and P/S ratio of 8.9. The dividend yield of Chimera Investment Corp Common Stock stocks is 17.3%.
The company is offering $331 million in public stock offering. Chimera reports 1Q dividend at $0.17 per share. Chimera expects investors to have an earnings yield of 16%.
George Soros owns 25,800 shares as of 12/31/2009, a decrease of 34.85% of from the previous quarter. This position accounts for less than 0.01% of the $6.95 billion portfolio of Soros Fund Management LLC.
PDL BioPharma Inc. (PDLI)Protein Design Labs Inc. is a biopharmaceutical company focused on the research, development and commercialization of novel therapies for inflammation and autoimmune diseases, acute cardiac conditions and cancer. Pdl Biopharma Inc. has a market cap of $759.9 million; its shares were traded at around $6.35 with a P/E ratio of 5.6 and P/S ratio of 2.4. The dividend yield of Pdl Biopharma Inc. stocks is 15.7%.
PDL BioPharma gave its investors $0.50 per share as special dividend payment. The company continues to cash in its antibody patents, which are set to expire in 2014. Many gurus consider this company to be a cheap stock with high yield. Annual 2009 revenue rose 8% to $318.2 million from $294.2 million in 2008. The company reports 2009 earnings of $189.7 million, or $1.07 per diluted share, compared with net income of $68.4 million in 2008, or $0.47 per diluted share. 4Q profits was $28.6 million, or $0.17 per diluted share, compared with net income of $40.6 million, or $0.26 per diluted share, for the same period in 2008.
George Soros owns 48,500 shares as of 12/31/2009, a decrease of 40.49% of from the previous quarter. This position accounts for less than 0.01% of the $6.95 billion portfolio of Soros Fund Management LLC.
MFA Mortgage Investments Inc. (MFA)MFA Mortgage Investments, Inc. operates as a real estate investment trust primarily engaged in the business of investing in mortgage-backed securities. Mfa Mortgage Investments Inc. has a market cap of $2.05 billion; its shares were traded at around $7.3 with a P/E ratio of 7.2 and P/S ratio of 3.8. The dividend yield of Mfa Mortgage Investments Inc. stocks is 13.1%.
The company declared 1Q dividend at $0.24 per share. Net income for the 4Q was $76.5 million, or $0.27 per share of common stock.
George Soros owns 44,700 shares as of 12/31/2009, which accounts for less than 0.01% of the $6.95 billion portfolio of Soros Fund Management LLC.
Windstream Corp. (WIN)Valor Communications Group is one of the largest providers of telecommunications services in rural communities in the southwestern United States. Windstream Corp. has a market cap of $5.03 billion; its shares were traded at around $11.01 with a P/E ratio of 11.5 and P/S ratio of 1.7. The dividend yield of Windstream Corp. stocks is 9.1%. Windstream Corp. had an annual average earning growth of 0.7% over the past 5 years.
Windstream Corp. is in process of acquiring Iowa Telecom. Iowa Telecom’s shareholders approved the purchase for $1.1 billion cash and debts. Windstream’s 4Q revenue declined 3% to $754.4 million from $777.5 million. 4Q earnings were $75.5 million, or 17 cents per share, compared with $81.1 million, or 19 cents per share, in the same quarter a year ago.
George Soros owns 586,500 shares as of 12/31/2009, an increase of 31.5% from the previous quarter. This position accounts for 0.09% of the $6.95 billion portfolio of Soros Fund Management LLC.
CHINA NEPSTAR ADS (NPD)Nepstar Chain Drugstore is China's largest retail drugstore chain based on the number of directly operated stores. China Nepstar Ads has a market cap of $752.5 million; its shares were traded at around $7.27 with a P/E ratio of 38.3 and P/S ratio of 2.3. The dividend yield of China Nepstar Ads stocks is 28.4%.
The Shen Zhen-based company declares yearly dividend of $0.28 per share, which is 20% lower than year before.
George Soros owns 22,200 shares as of 12/31/2009, a decrease of 28.85% of from the previous quarter. This position accounts for less than 0.01% of the $6.95 billion portfolio of Soros Fund Management LLC.
To check the complete list of High Yield Stocks of George Soros, please go to http://www.gurufocus.com/holdings.php?GuruName=George+Soros&tab=yield