5 New Stock Picks of Billionaire George Soros

2. Cerner Corporation (NASDAQ:CERN)

Soros Fund Management’s Stake Value: $108,658,000

Percentage of Soros Fund Management’s 13F Portfolio: 1.48%

Number of Hedge Fund Holders: 36

Cerner Corporation (NASDAQ:CERN) is an American supplier of health informatics software, devices, and hardware. Soros Fund Management acquired 1.17 million shares of Cerner Corporation (NASDAQ:CERN) in Q4 2021, worth $108.6 million, representing 1.48% of the firm’s 13F portfolio. 

On February 11, Oracle Corporation (NYSE:ORCL) announced that it extended the tender offer for shares of Cerner Corporation (NASDAQ:CERN) to March 16, from a prior date of February 15. In December, Oracle announced its intention to acquire Cerner Corporation (NASDAQ:CERN) for $95 per share in cash, pushing further into the healthcare tech space.

KeyBanc analyst Donald Hooker on December 21 downgraded Cerner Corporation (NASDAQ:CERN) to Sector Weight from Overweight without a price target after news that the company plans to be acquired by Oracle Corporation (NYSE:ORCL). The analyst believes the acquisition price of $95 per share fully values Cerner Corporation (NASDAQ:CERN).

In Q3 2021, 36 hedge funds reported owning stakes in Cerner Corporation (NASDAQ:CERN), amounting to $1.27 billion, as compared to 38 funds in the prior quarter, holding stakes in Cerner Corporation (NASDAQ:CERN) worth $1.39 billion. Jeffrey Smith’s Starboard Value LP is the biggest stakeholder of the company as of September 2021, with 3.2 million shares valued at approximately $229 million. 

Here is what Cooper Investors Global Equities Fund (Hedged) has to say about Cerner Corporation (NASDAQ:CERN) in their Q1 2021 investor letter:

“The investment in Cerner, made just over a year ago, was based on what we perceived to be a Low-Risk Turnaround opportunity as a refreshed management team sought to increase margins, reduce capex and utilize balance sheet latency with buybacks and acquisitions. Taking account of the tough 2020 for Cerner’s hospital client base the company did a reasonable job executing on these initiatives. However, moving into 2021 more recent observations around intentionality and focus led to a reassessment of the investment proposition, particularly relative to the portfolio’s other technology and software investments.”