In the second quarter, George Soros (Trades, Portfolio) of Soros Fund Management LLC acquired two new holdings. They are Liberty Broadband Corp. (LBRDK, Financial) and Rovi Corp. (ROVI, Financial).
Soros founded Soros Fund Management in 1969, where he serves as chairman. The firm is the primary adviser for the Quantum Group of Funds. Soros is recognized for having the best performance record of any investment fund in the world, over a 26-year period.
Soros’ theory on the financial markets is that they are chaotic, driven by human emotion. He focuses on a theory of reflexivity, which is based on the idea that individual investor biases affect the market and economy.
Soros holds stock in 154 companies and is worth $3.2 million. His quarter-over-quarter turnover rate is 28%.
Liberty Broadband
In Liberty, Soros purchased 8,892,050 shares for an average price of $58.3 per share. The transaction had an impact of 16.5% on the portfolio.
Liberty Broadband provides cable services in the U.S. It offers a variety of entertainment, information and communication solutions to its customers. It has a market cap of $12.4 billion with an enterprise value of $12.5 billion. It has a price-book (P/B) ratio of 1.4 and a price-sales (P/S) ratio of 100.1. GuruFocus ranked its financial strength 6 of 10 and its profitability and growth 4 of 10.
The company has an operating margin of -11.36% and a net margin of 1,138.9%. Its Piotroski F-Score is 3, indicating a poor business operation. Its Altman Z-Score is 7.26, placing it in the safe zone.
Among the gurus invested in Liberty, Jana Partners (Trades, Portfolio) is the largest shareholder.
Rovi
In Rovi, Soros purchased 4,066,666 shares at an average price of $16.81 per share. The transaction had an impact of 1.97% on the portfolio.
Rovi is involved with the discovery, delivery, display and monetization of digital entertainment. It has a market cap of $1.7 billion with an enterprise value of $2.4 billion. It has a forward price-earnings (P/E) ratio of 12.9, a P/B of 1.6 and a P/S of 3.3. GuruFocus ranked its financial strength 5 of 10 and its profitability and growth 7 of 10.
The company has an operating margin of 13.2% and a net margin of -3.8%. Its Piotroski F-Score is 7, indicating a healthy business. However, its Altman Z-Score is 1.15, placing it in the distress zone.
Soros has been involved with Rovi for several years. Previously, he sold out of Rovi in the first quarter of 2016. Soros is the largest shareholder among the gurus, followed by Jim Simons (Trades, Portfolio).
Other buys Soros made during the second quarter include SPDR Gold Trust (GLD, Financial), Communications Sales & Leasing Inc. (CSAL, Financial), Grupo Supervielle SA (SUPV, Financial) and Activision Blizzard Inc. (ATVI, Financial).
Disclosure: I do not own stock in any companies mentioned in the article.
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