George Soros (Trades, Portfolio), manager of Soros Fund Management, disclosed this week he trimmed his holding in Allot Ltd. ALLT and VICI Property Inc. VICI according to GuruFocus real-time picks.
Soros’ investing theory hinges on the idea of reflexivity, which is based on the premise that individual investor biases affect market transactions and the economy. In other words, the price of securities depend on the actions of traders, who tend to act out of highly emotional reactions rather than coolly logical calculations.
According to current portfolio statistics, Soros’ top three sectors in terms of portfolio weight are communication services, consumer discretionary and financial services.
Allot
Soros trimmed 58.44% off his holding in Allot, selling 1,910,196 shares at the Feb. 5 price of $7.70 per share.
The Israeli communication equipment company provides solutions that enable mobile, fixed and enterprise service providers to protect and personalize the digital experience. Allot’s integrated solutions include analytics, traffic management and video caching.
Although the company has strong financial strength, Allot’s profitability rank of 3 suggests low growth potential. GuruFocus lists several red flags, which include increasingly negative profit margins and a three-year revenue decline rate of 1.40%. Additionally, Allot’s return on equity underperforms approximately 80% of global competitors.
VICI Properties
Soros sold 600,000 shares of VICI Properties at the Dec. 31, 2018 price of $18.78 per share.
VICI Properties acquires and develops real estate properties through its two business segments: real property and golf course. The former consists of the company’s leased properties while the latter consists of its golf course assets.
GuruFocus ranks the REIT’s financial strength 5 out of 10: although VICI Properties’ equity-to-asset ratio ranks higher than 63% of global competitors, its debt-to-EBITDA ratio of 6.28 and Altman Z-score of 1.54 both signal possible financial distress.
See also
Real-time picks, a major Premium feature of GuruFocus, lists the trades in which the guru owns more than 5% of the company’s total shares outstanding. Per Securities and Exchange Commission guidelines, gurus must file such trades within 10 business days.
Disclosure: No positions.
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