In this piece, we will take a look at the top five finance stocks to buy according to George Soros’ Soros Fund Management. If you want a detailed introduction about Mr. Soros, and learn about more stocks, then take a look at 10 Finance Stocks to Buy Today According to George Soros’ Soros Fund Management.
5. LPL Financial Holdings Inc. (NASDAQ:LPLA)
Soros Fund Management’s Stake Value: $32.8 million
Percentage of Soros Fund Management’s 13F Portfolio: 0.45%
Number of Hedge Fund Holders: 48
LPL Financial Holdings Inc. (NASDAQ:LPLA) is a brokerage and investment advisory services provider headquartered in the United States. The company offers services and products such as annuities, equities, mutual funds, savings plans, insurance, and alternative investments.
Mr. Soros’ hedge fund owned 205,431 LPL Financial Holdings Inc. (NASDAQ:LPLA) shares during the fourth quarter of last year. These were worth $32.8 million and they represented 0.45% of its investment portfolio. Insider Monkey’s survey of 924 hedge funds during the same time period revealed that 48 had owned the company’s shares.
LPL Financial Holdings Inc. (NASDAQ:LPLA) brought in $2 billion in revenue and $1.32 in GAAP EPS by the end of its fourth fiscal quarter, beating analyst estimates on both counts. JMP Securities upgraded the firm’s share price rating to Outperform from Market Perform in April 2022, stating that interest rate stabilization will help the company.
LPL Financial Holdings Inc. (NASDAQ:LPLA)’s largest investor is Robert Pohly’s Samlyn Capital which owns 2.2 million shares worth $356 million.
Baron Funds mentioned the company in its fourth quarter 2021 investor letter. Here is what the firm said:
“We initiated a position in LPL Financial Holdings Inc., an independent broker-dealer for financial advisors. The U.S. market for financial advice continues to grow, as does the volume of assets that are advisor-mediated. There is also an ongoing migration away from wirehouses, such as Morgan Stanley and Wells Fargo, to independent firms in which the financial advisor runs their own practice and retains more of the economics. LPL offers an integrated technology platform, brokerage services, and practice management support that help advisors run their own independent advisory firms with a broad menu of investment options. LPL is the largest independent broker-dealer in the country with $1.1 trillion of assets under management and nearly 20,000 advisors on its platform. LPL is classified within the “Leader” category.
We believe that LPL has compelling growth opportunities and enjoys strong competitive advantages. As the largest independent broker-dealer, LPL has scale advantages from managing a growing pool of assets over a fixed cost base. LPL has invested heavily in technology over the past five years, and it also self-clears transactions, which provides additional revenue streams. These capabilities lead to superior margins and cash flow, which then enable LPL to invest more in its technology and better compete for new advisors. LPL continues to gather assets as advisors migrate away from the wirehouses. The company is shifting towards advisory fees paid as a percentage of assets under management and away from transaction-based brokerage commissions. Given this revenue model, LPL benefits from underlying asset appreciation, which is a natural tailwind to growing LPL’s asset base. LPL also earns cash sweep revenues on idle client cash balances. As interest rates rise, we believe LPL will be able to monetize these balances at higher yields, improving its overall return on assets. With a profitable business, good growth prospects, and underlying tailwinds, we believe that LPL is well positioned to continue growing earnings per share at a rapid rate.”
4. Ally Financial Inc. (NYSE:ALLY)
Soros Fund Management’s Stake Value: $32.8 million
Percentage of Soros Fund Management’s 13F Portfolio: 0.45%
Number of Hedge Fund Holders: 48
Ally Financial Inc. (NYSE:ALLY) is a digital financial services company that caters to the needs of different types of customers. These include public, commercial, and corporate customers. It offers automotive financing, lines of credit to car dealers, insurance, and mortgage loan portfolios.
For its fiscal Q4, Ally Financial Inc. (NYSE:ALLY) raked in $2.2 billion in revenue and $2.0.2 in non GAAP EPS, beating analyst estimates for both metrics. Morgan Stanley reduced its price target to $55 from $73 in March 2022, outlining that the impacts of the Russian invasion of Ukraine will not bode well for the company.
Soros Fund Management owned a $32.8 million stake in Ally Financial Inc. (NYSE:ALLY) as Q4 2021 came to an end. This was via holding 690,909 shares. Insider Monkey analyzed 924 hedge fund holdings for the same time period and found out that 48 had owned the company’s shares.
Natixis Global Asset Management’s Harris Associates is Ally Financial Inc. (NYSE:ALLY)’s largest investor. It owns 24 million shares worth $1 billion.
3. Focus Financial Partners Inc. (NASDAQ:FOCS)
Soros Fund Management’s Stake Value: $36.7 million
Percentage of Soros Fund Management’s 13F Portfolio: 0.5%
Number of Hedge Fund Holders: 27
Focus Financial Partners Inc. (NASDAQ:FOCS) is a wealth management firm for high net worth individuals, families, and businesses. It offers services such as tax planning, financial consultancy, investment advice, financial, investment, and insurance products.
Mr. Soros’ hedge fund held a $36.7 million stake in Focus Financial Partners Inc. (NASDAQ:FOCS) during Q4 2021, through owning 615,611 shares. Insider Monkey’s 924 hedge fund survey for the same time period revealed that 27 had owned a stake in the company.
Focus Financial Partners Inc. (NASDAQ:FOCS) reported $523 million in revenue and $1.10 ion non-GAAP EPS for its fiscal fourth quarter, beating analyst estimates for both. Raymond James lowered its price target to $60 from $66 in April 2022, justifying its decision by stating that higher interest rates are likely to increase the company’s expenses.
Focus Financial Partners Inc. (NASDAQ:FOCS)’s largest investor is Scott W. Clark’s Darlington Partners Capital. It owns 1.8 million shares worth $111 million.
Wasatch Global Investors mentioned the company in its Q2 2021 investor letter, outlining that:
“We’re excited about several new portfolio holdings in the Fund. For example, during the second quarter, we purchased Focus Financial Partners, Inc. (FOCS). Focus Financial provides holistic wealthmanagement services. The company offers financial planning, asset allocation, asset management and tax preparation. What we like most about Focus Financial is that the company is taking ownership stakes in independent, ultra-high-networth investment advisory firms around the world. This is attractive for the advisory firms because they: (1) get to continue operating with significant independence; (2) gain access to an expanded menu of top-notch products and services for clients; (3) get to maintain their legacy as a highquality firm; and (4) receive immediate cash in exchange for giving up some ownership. Focus Financial has seen extremely strong revenues and earnings because it has the infrastructure to rapidly grow the investment advisory firms that were started by talented entrepreneurs. Of all businesses, advisory firms achieve some of the best economies of scale due to the fact that fixed costs pale in comparison to asset-based revenues.”
2. MGM Growth Properties LLC (NYSE:MGP)
Soros Fund Management’s Stake Value: $70.3 million
Percentage of Soros Fund Management’s 13F Portfolio: 0.96%
Number of Hedge Fund Holders: 30
MGM Growth Properties LLC (NYSE:MGP) is a real estate investment trust that is involved in buying, holding, and leasing properties primarily to the leisure and resort sector. The company’s properties include casinos, hotels, convention centers, and other retail offerings. It is also the owner of the renowned The Park in Las Vegas, Nevada, United States.
As its fiscal fourth quarter came to an end, MGM Growth Properties LLC (NYSE:MGP) posted $0.60 in funds from operations (FFO) and $199 million in revenue, beating Wall Street analyst estimates for both. Its takeover agreement by another company resulted in several analyst downgrades in March 2022.
Soros Fund Management’s stake in MGM Growth Properties LLC (NYSE:MGP) was worth $70.3 million in Q4 2021. It came through the fund owning 1.7 million shares and represented 0.96% of its investment portfolio. Insider Monkey’s survey for the same quarter saw 30 out of 924 hedge funds invest in the company.
Alec Litowitz and Ross Laser’s Magnetar Capital is MGM Growth Properties LLC (NYSE:MGP)’s largest investor. It owns 3.2 million shares worth $132 million.
1. iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF)
Soros Fund Management’s Stake Value: $77 million
Percentage of Soros Fund Management’s 13F Portfolio: 1.05%
Number of Hedge Fund Holders: N/A
iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) is a part of a collection of exchange traded funds that are managed by BlackRock. This particular fund corresponds to the price and yield performance of seven to ten year bonds issued by the United States treasury.
iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF)’s latest dividend payout saw it return $0.1059 per share to investors, marking a 0.85% dividend yield. The fund has a five year return of 4.6% and a three year return of 14%.
Mr. Soros’ hedge fund held 582,371 iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) shares during last year’s final quarter. This translated into a $77 million stake and represented 1.05% of its investment portfolio.
iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF)’s largest shareholder is Ken Fisher’s Fisher Asset Management. It owns 16.6 million shares worth $2.2 billion.
Disclosure: None. You can also take a look at 12 Best Semiconductor Stocks To Invest In Right Now and 10 Cheap Dividend Kings with Over 2% Yield.
