3 of George Soros' Quantum Fund's Most Loved Stocks

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Dec 21, 2012
George Soros is the founder of Soros Fund Management. In 1970 he co-founded the Quantum Fund with Jim Rogers and Christoper Ink, which created the bulk of the Soros fortune. Legendary was his currency speculation against the Bank of England:

On Sept. 16, 1992, Soros' fund sold short more than USD10 billion worth of pounds sterling, profiting from the Bank of England's reluctance to either raise its interest rates to levels comparable to those of other European Exchange Rate Mechanism countries or to float its currency. Finally, the Bank of England withdrew the currency from the European Exchange Rate Mechanism, devaluing the pound sterling. Soros earned an estimated worth of USD1.1 billion in the process. He was dubbed "the man who broke the Bank of England." UK Treasury estimated the total costs of Black Wednesday at GBP 3.4 billion in 1997.

Below is a top 30 list of his investment positions as of Sept. 30, 2012. Soros Fund Management LLC was valued at $3.8 billion. Top new buys: AIG, PXD, PNKD, GOOG, WAG, BTU, TGT, DNR, AMZN

During the quarter George Soros had 66 total positions.

Here are his 3 top positions:

Johnson & Johnson (JNJ ) has a market capitalization of $196.07 billion. The company employs 117,900 people, generates revenue of $65.030 billion and has a net income of $9.67 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15.99 billion. The EBITDA margin is 24.59 percent (the operating margin is 19.01 percent and the net profit margin 14.87 percent).

Financial Analysis: The total debt represents 17.27 percent of the company’s assets and the total debt in relation to the equity amounts to 34.39 percent. Due to the financial situation, a return on equity of 17.02 percent was realized. Twelve trailing months earnings per share reached a value of $3.04. Last fiscal year, the company paid $2.25 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.24, the P/S ratio is 3.02 and the P/B ratio is finally 3.38. The dividend yield amounts to 3.45 percent and the beta ratio has a value of 0.55.

General Electric (GE) has a market capitalization of $220.74 billion. The company employs 301,000 people, generates revenue of $147.3 billion and has a net income of $14.37 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31.02 billion. The EBITDA margin is 21.06 percent (the operating margin is 13.64 percent and the net profit margin 9.75 percent).

Financial Analysis: The total debt represents 63.22 percent of the company’s assets and the total debt in relation to the equity amounts to 389.43 percent. Due to the financial situation, a return on equity of 11.06 percent was realized. Twelve trailing months earnings per share reached a value of $1.35. Last fiscal year, the company paid $0.61 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.62, the P/S ratio is 1.50 and the P/B ratio is finally 1.91. The dividend yield amounts to 3.61 percent and the beta ratio has a value of 1.61.

Walgreen Company (WAG) has a market capitalization of $35.51 billion. The company employs 171,000 people, generates revenue of $71.63 billion and has a net income of $2.13 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.63 billion. The EBITDA margin is 6.46 percent (the operating margin is 4.84 percent and the net profit margin 2.97 percent).

Financial Analysis: The total debt represents 16.11 percent of the company’s assets and the total debt in relation to the equity amounts to 29.57 percent. Due to the financial situation, a return on equity of 12.86 percent was realized. Twelve trailing months earnings per share reached a value of $2.42. Last fiscal year, the company paid $0.95 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.51, the P/S ratio is 0.49 and the P/B ratio is finally 1.94. The dividend yield amounts to 2.93 percent and the beta ratio has a value of 1.01.

Take a closer look at the full portfolio from George Soros. The average P/E ratio amounts to 18.45. The dividend yield has a value of 0.89 percent. Price to book ratio is 4.98 and price to sales ratio 2.90.

Related stock ticker symbols:

AIG, AGRO, GE, GLD, NTAP, WMT, JNJ, CF, CHTR, LNKD, GOOG, MSI, PXD, ESRX, WAG, DISH, GDX, STI, ACTG, BTU, GM, SFLY, LNG, TGT, LCC, AMZN, EQT, DNR, GDXJ, DAL

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Originally published at “long-term-investments.blogspot.com.”