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James Li
James Li
Articles (585)  | Author's Website |

George Soros Bets Big on Caesars in 4th Quarter

Guru reports top buys from latest portfolio report

February 20, 2018 | About:

George Soros (Trades, Portfolio), manager of Soros Fund Management, disclosed Feb. 14 that he nearly went all-in on Caesars Entertainment Corp. (NASDAQ:CZR) during fourth-quarter 2017. The hedge fund guru also started 89 new positions: The top three buys based on portfolio impact are Overstock.com Inc. (NASDAQ:OSTK), Kennedy-Wilson Holdings Inc. (NYSE:KW) and Alerian MLP (AMLP).

Caesars

Soros expanded his Caesars position 1066.90%, adding 31,541,978 shares for an average price of $12.68. With this transaction, the guru stretched his portfolio 11.06%.

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Caesars operates 12 casinos in the U.S., including eight on the Las Vegas Strip. The company has poor financial strength, highlighted by weak interest coverage and Altman Z-scores.

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Overstock.com

As discussed in a previous article, Soros invested in 2,472,188 shares of Overstock.com for $40.10 on Nov. 8. As the company’s stock currently trades for $67.70, Soros gained approximately 41% on Overstock.com based on GuruFocus estimates.

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Although Overstock.com’s financial strength ranks 6 out of 10, the company has a weak Piotroski F-score of 3 and operating margins that underperform 82% of global competitors. Declining returns on assets, lower current ratios and asset turnover primarily contributed to Overstock.com’s weak Piotroski F-score.

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Guru’s other top three buys

Soros also invested in 6,159,366 shares of Kennedy-Wilson and 8,021,000 shares of Alerian MLP. Kennedy-Wilson’s share price averaged $18.83 during the quarter while Alerian MLP’s averaged $10.69.

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Kennedy-Wilson owns, operates and invests in real estate through its own investment management platform. Although the company has a strong profitability rank of 7, Kennedy-Wilson’s financial strength ranks a low 4 out of 10, driven primarily by week Altman Z-scores, high debt-to-equity and debt-to-EBITDA ratios.

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According to the Alerian website, the Alerian MLP Index tracks the performance of master limited partnerships (MLPs) in the energy sector.

Disclosure: I do not have positions in the stocks mentioned.

About the author:

James Li
I am an editorial assistant and researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

Visit James Li's Website


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