One of the greatest hedge fund managers of all time, George Soros is currently not actively involved in the day-to-day activity of his family office. Still, one should pay attention to the moves reported by the fund, as Soros has employed top portfolio managers to take care of his fortune. Soros Fund Management had an equity portfolio valued at $4.67 billion at the end of the second quarter, mainly invested in technology and financial stocks. The portfolio suffered some major changes, as the management team sold out of 133 positions and added 79 new ones, some of which have went straight to the top. In this article we’ll take a look at the top 5 new positions reported in the fund’s latest 13F filing.
While there are many metrics that investors can assess in the investment process, hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).
Everybody Loves Activision Blizzard
Opening our top five is Activision Blizzard, Inc. (NASDAQ:ATVI), the video game developer behind hits like Call of Duty and Starcraft. During the second quarter, Soros Fund Management acquired 378,981 shares valued at a little over $15 million at the end of June. Hedge fund interest towards Activision Blizzard, Inc. (NASDAQ:ATVI) picked up during the quarter, with the number of long hedge fund positions (among the funds we track) rising to 68 at the end of June from 52 registered at the end of March. Billionaire Ken Griffin is also very bullish on this stock, having increased his fund’s investment by 627% to approximately 5.63 million shares worth $223 million. The rise in popularity of Activision Blizzard, Inc. (NASDAQ:ATVI) is down to a well planned expansion strategy that is finally paying off. Whereas Activision Blizzard used to have just a handful of gaming brands that accounted for most its revenue, in the recent years the company expanded its portfolio considerably and has entered the market for mobile gaming with the acquisition of King Digital, the maker of Candy Crush.
Bet On Argentinian Bank
Next up is Grupo Supervielle SA -ADR (NYSE:SUPV), an Argentinian company engaged mainly in financial services sector. According to its latest 13F filing, George Soros’ fund amassed 1.37 million shares during the quarter, a position worth $17.5 million at the end of June. The company went public at the end of May with a global offering of 127.5 million shares. In the United States, Grupo Supervielle SA -ADR (NYSE:SUPV) offered shares represented by 23.6 million American Depositary Shares (ADS) at $11.00 per unit. Since then, the stock has been steadily advancing, currently up by 34.5% through Friday’s closing price of $14.8 per share. The company was established in 1887 and is currently run by the Supervielle family, having a strong presence in the Buenos Aires metropolitan area as well as Mendoza and San Luis. At the end of the second quarter, roughly 19% of Grupo Supervielle SA -ADR (NYSE:SUPV) common stock was held by 10 of the hedge funds tracked by Insider Monkey. Dan Loeb has also shown great interest in the company, as his fund, Third Point, established the largest new position: 4.5 million shares valued at $57.5 million.
Turn the page to find out more about Soros Fund Management’s top three new stock picks.