Billionaires George Soros and James Dinan Love These Stocks

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Recently, we have gone through our database consisting of over 700 hedge funds and found that Dow Chemical Co (NYSE:DOW), Zoetis Inc (NYSE:ZTS), Allergan PLC (NYSE:AGN), Endo International plc (NASDAQ:ENDP) and DISH Network Corp (NASDAQ:DISHdrew the attention of prominent billionaire investors George Soros and James Dinan, both of whom disclosed long positions in these companies as of the end of March. So, let’s take a closer look at how these stocks are positioned in the billionaires’ portfolios and how they have performed over the last few months.

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George Soros, or ‘the man who broke the bank of England’, is an 84-year-old billionaire famously known for his bets against the British Pound, which made him a fortune. Now he holds the 29th position on the Forbes list of the wealthiest people on the planet, with a net worth of $24.2 billion. Over the last year, his family office, Soros Fund Management, returned about 8% versus the 3.3% industry average during this time, according to Hedge Fund Research. James Dinan’s figures are a bit more modest, relatively speaking. He ranks 276th in the Forbes’ US billionaires list, with a net worth of $2.4 billion. According his the latest 13F filing, the equity portfolio of his fund, York Capital Management, was valued at $14.56 billion. The fund is widely diversified across all sectors, with the consumer staples and finance industries leading the way in terms of capital allocation.

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During the first three months of the year, Soros trimmed his holding in Dow Chemical Co (NYSE:DOW), a $61.43 billion basic materials company, by 11% to 4.36 million shares valued at $222.12 million. This company is one of the largest manufacturers of integrated materials in the world, and is now undergoing a transformation of its business, reorganizing and restructuring its divisions, with the goal of increasing its return on capital. Some analysts believe that the stock is trading with a decent 20% margin of safety. Dinan’s York Capital Management held about 4.68 million shares of Dow Chemical Co (NYSE:DOW), valued at $227.73 million at the end of the first quarter.

Soros’ position in Zoetis Inc (NYSE:ZTS) contains 4.11 million shares, worth $190.10 million. So far this year, the stock of the developer of animal vaccines has advanced by 11.62%. Zoetis Inc (NYSE:ZTS), a former animal health division of Pfizer Inc (NYSE:PFE), was saddled with $3.6 billion of debt from its parent company after its spin-off in 2013. Despite that, Zoetis Inc (NYSE:ZTS) has very nice perspectives, since it operates in a relatively uncompetitive segment, with lucrative 10-12% profit margins. The stock has experienced an eventful ride in the last week, as it was rumored that Valeant would pursue a purchase of the company, which we hinted could be a possibility in March after Bill Ackman took a big stake in Valeant. However, the rumors were quickly shot down, leading to a surge last Thursday, followed by a crash back down last Friday. BMO also downgraded the stock to ‘Market Perform’ last Friday, though it raised its price target to $57 from $51 at the same time. James Dinan’s York Capital Management held about 4.48 million shares of Zoetis valued at $207.29 million at the end of March.

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