In this article, we discuss the top 10 large-cap stock picks from George Soros’ stock portfolio. If you want to see more stocks in this selection, check out George Soros Stock Portfolio: Top 5 Large-Cap Stock Picks.
George Soros, a Hungarian-American businessman, founded Soros Fund Management in 1970. Soros Fund Management is a New York-based hedge fund which carved its place as one of the most profitable funds on Wall Street, however, it is now structured as a family office. The George Soros stock portfolio is worth $5.6 billion as of the second quarter of 2022, and the billionaire makes highly leveraged investments keeping in mind the currency movements and commodity prices, as well as fundamental macroeconomic and market analysis. The condition of the housing market also plays an important role in his investment decisions. Soros tends to invest in large-cap, small-cap, exchange traded funds, and both growth and value plays.
Large-cap stocks are usually perceived as less risky. These tend to be companies that are very stable and dominate their respective sectors, with market capitalization ranging from $10 billion to $200 billion. These prominent firms have fortress balance sheets and the ability to withstand market volatility. Large-cap companies also usually return a percentage of their profits to shareholders as dividends, which helps investors navigate a downturn in the economy relatively better. Some of the best large-cap stocks in the George Soros stock portfolio are Salesforce, Inc. (NYSE:CRM), NIKE, Inc. (NYSE:NKE), and Intuit Inc. (NASDAQ:INTU).
Our Methodology
We selected the top large-cap stock picks from George Soros’ stock portfolio as of the end of the second quarter of 2022 for this analysis. Insider Monkey’s database of 895 elite hedge funds tracked as of the end of the second quarter of 2022 was used to assess the hedge fund sentiment around the securities.
George Soros Stock Portfolio: Top Large-Cap Stock Picks
10. Liberty Broadband Corporation (NASDAQ:LBRDA)
Number of Hedge Fund Holders: 27
Liberty Broadband Corporation (NASDAQ:LBRDA) is a Colorado-based communications company that provides a range of wireless, data, video, voice, and managed services to residential customers, businesses, government entities, and educational and medical institutions. In Q2 2022, the George Soros stock portfolio had 1.75 million shares of Liberty Broadband Corporation (NASDAQ:LBRDA), worth $202.35 million and representing 3.6% of the total 13F securities. Liberty Broadband Corporation (NASDAQ:LBRDA) has been part of the Soros portfolio since the second quarter of 2016.
On May 10, Deutsche Bank analyst Bryan Kraft maintained a Buy recommendation on Liberty Broadband Corporation (NASDAQ:LBRDA) but lowered the firm’s price target on the shares to $158 from $196.
According to Insider Monkey’s second quarter database, Liberty Broadband Corporation (NASDAQ:LBRDA) was part of 27 public stock portfolios, compared to 26 in the prior quarter. Boykin Curry’s Eagle Capital Management held the leading position in the company, comprising 8.30 million shares worth $960.2 million.
Like Salesforce, Inc. (NYSE:CRM), NIKE, Inc. (NYSE:NKE), and Intuit Inc. (NASDAQ:INTU), Liberty Broadband Corporation (NASDAQ:LBRDA) is one of the top large-cap picks from the George Soros stock portfolio.
Alphyn Capital made the following comment about Liberty Broadband Corporation (NASDAQ:LBRDA) in its Q3 2022 investor letter:
“In retrospect, I wish I had cut the position in Liberty Broadband Corporation (NASDAQ:LBRDA) more aggressively last quarter. Fears of fixed wireless and fiber competition have weighed heavily on Charter and Liberty’s share prices. Tom Rutledge’s unexpected early retirement from the CEO role has not helped matters.
I believe the sentiment is now overly pessimistic, and the valuation once again attractive. Revenue growth from broadband ads will likely stall as fixed wireless access programs take a bite out of cable subscribers over the next five years. 4 However, Charter has a fast-growing mobile phone business through an MVNO (mobile virtual network operator) agreement with Verizon. Given its cost-effective access to Verizon’s mobile telephony infrastructure, it provides a branded mobile phone service to retail customers at competitive rates. For example, Unlimited pricing starts at $29.99/month, including taxes and fees, vs. $35-55/month plus taxes and fees for Verizon’s plans.
Wireless generates approximately $725m in revenues for Charter per quarter, around 6% of the total, and is growing 40% per year. Should this continue, Wireless could return Charter to mid-single-digit revenue growth and “drive meaningful EBITDA for Charter,” as revenues scale over a low cost base. With approximately 25m non-Charter potential wireless customers within the area it serves, there is plenty of room for growth.”
9. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 35
Rivian Automotive, Inc. (NASDAQ:RIVN) is a California-based company that designs, develops, manufactures, and sells electric vehicles and related accessories. Rivian Automotive, Inc. (NASDAQ:RIVN) is the largest holding in the George Soros stock portfolio, with 17.8 million shares worth $459 million, representing 8.17% of the total securities. Soros Fund Management added Rivian Automotive, Inc. (NASDAQ:RIVN) to its portfolio in the last quarter of 2021.
On October 11, after a conversation with the management, Mizuho analyst Vijay Rakesh said that Rivian Automotive, Inc. (NASDAQ:RIVN)’s vehicle recall is “relatively minor” and that its manufacturing lines have already been updated. He believes Rivian Automotive, Inc. (NASDAQ:RIVN) has seen the issue on “less than 1%” of vehicles and the company forecasts the cost of fixing the recall to be “minimal”. The analyst noted that the headlines are “worse than reality” and maintained a Buy rating on the shares with a $65 price target.
Among the hedge funds tracked by Insider Monkey, 35 funds reported owning stakes worth $1.6 billion in Rivian Automotive, Inc. (NASDAQ:RIVN) at the end of Q2 2022, compared to 29 funds in the prior quarter worth $4 billion. Philippe Laffont’s Coatue Management is the biggest position holder in the company, with 18.8 million shares worth $486 million.
Here is what Baron Fifth Avenue Growth Fund has to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q2 2022 investor letter:
“Rivian Automotive, Inc. designs, manufactures, and sells consumer and commercial electric vehicles. Shares of Rivian declined 48.2% in the second quarter as investors continued rotating out of long-duration assets and have become increasingly concerned about capital intensity and cash burn.
At the same time, Rivian continues to be impacted by supply chain issues which are causing delays in its production ramp. Rivian is addressing those challenges by diversifying its supply chain to alleviate shortages while also consolidating the number of variants in development to reduce cash burn (the company guided that current cash will be enough to support the company’s future platform launch ‘R2’ in 2025). Rivian recently reported stronger-than-expected second quarter production numbers while reiterating its annual guidance of producing 25,000 units.
As semiconductor shortages ease, we believe that the company will be able to rapidly ramp its production. We retain conviction in the shares given management’s vision, Rivian’s product positioning, the company’s relationship with Amazon.com, and its strong balance sheet. As of the end of the first quarter, Rivian had $17 billion of cash and cash equivalents, which will help it overcome the current challenges while taking advantage of the long-term opportunity as the market transitions to electric vehicles.”
8. Aptiv PLC (NYSE:APTV)
Number of Hedge Fund Holders: 43
Aptiv PLC (NYSE:APTV) was founded in 2011 and is based in Dublin, Ireland. The company manufactures and sells electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets worldwide. In the second quarter of 2022, the George Soros stock portfolio lifted its Aptiv PLC (NYSE:APTV) stake by 1%, holding 246,055 shares worth nearly $22 million. The stock has been part of the Soros portfolio since Q2 2020.
On September 28, Berenberg analyst Jared Maymon assumed coverage of Aptiv PLC (NYSE:APTV) with a Buy rating and a $130 price target. The analyst noted that content per vehicle is increasing and Aptiv PLC (NYSE:APTV) is gaining share. He believes Aptiv PLC (NYSE:APTV) is well positioned to capture a significant share of an expanded total addressable market in the long term.
According to Insider Monkey’s data, 43 hedge funds were long Aptiv PLC (NYSE:APTV) at the end of June 2022, compared to 48 funds in the earlier quarter. Ian Simm’s Impax Asset Management is the largest stakeholder of the company, with 4.6 million shares worth $417 million.
Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about Aptiv PLC (NYSE:APTV) in its Q1 2022 investor letter:
“The acceleration in electrification of transport should support electric vehicle (EV)-related stocks like Aptiv (NYSE:APTV), which came under pressure in the quarter on concerns the auto cycle is past its peak. Aptiv provides a range of solutions for the auto industry, including autonomous driving technologies, safety technologies, components, and wiring. The large exposure of APTV to EVs should lead to long-term value as EVs continue their growth, boosted by their relative attractiveness as prices at the pump hit near-historic highs.”
7. D.R. Horton, Inc. (NYSE:DHI)
Number of Hedge Fund Holders: 44
D.R. Horton, Inc. (NYSE:DHI) is a Texas-based homebuilding company that constructs and sells residential homes under the D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes brands. In Q2 2022, the George Soros stock portfolio featured nearly 3 million shares of D.R. Horton, Inc. (NYSE:DHI), worth $197 million and representing 3.5% of the total holdings.
Raymond James analyst Buck Horne on October 21 downgraded D.R. Horton, Inc. (NYSE:DHI) to Outperform from Strong Buy with a price target of $77, down from $103. The downgrade factors in the analyst’s more concerned outlook on the housing market as mortgage rates have driven affordability to uncharted highs. However, he remains constructive on D.R. Horton, Inc. (NYSE:DHI) in this environment as the sector’s most cost-efficient producer of single-family housing.
Among the hedge funds tracked by Insider Monkey, D.R. Horton, Inc. (NYSE:DHI) was part of 44 public stock portfolios at the end of June 2022, compared to 52 in the last quarter. John Armitage’s Egerton Capital Limited is the leading position holder in the company, with 7.6 million shares worth $504 million.
Here is what Third Avenue Management specifically said about D.R. Horton, Inc. (NYSE:DHI) in its Q2 2022 investor letter:
“D.R. Horton, Inc. (NYSE:DHI) is the largest homebuilder in the US by volume (the company sold more than 90k homes in the past year) with a well-recognized focus on delivering quality product at the entry-level price point (its average selling price is less than $400k) and market-leading positions in key Sunbelt markets.
While the near-term outlook for DR Horton remains uncertain given the adjustments occurring in the US residential markets, the medium-to-long-term prospects for volume-based homebuilders with super-strong balance sheets and scale advantages continue to be promising in Fund Management’s view. More specifically, (i) residential inventories remain around record-low levels in most major markets when gauged by aggregate units available (see chart below), (ii) demand for single-family residences seem to have multiple secular drivers as the largest generation in US history (the “millennial cohort”) enters its prime home buying years and desires more space not only due to “life events” but also “remote” and “hybrid” working arrangements, and (iii) significant inflation in rental rates for multi-family units in urban areas has left the rent-to-own proposition for single-family homes in suburban areas in a compelling range (particularly in the Sunbelt region which is experiencing outsized job growth and wage growth relative to broader national figures).
In Fund Management’s view, the two industry participants that seem most likely to take part in this shift include DR Horton and Lennar Corp. (a long-held position in the Fund). In conjunction, these two “blue-chip builders” now account for approximately 10% of the Fund’s capital, as well as roughly one out of every five new homes built in the Sunbelt. They would also qualify under Third Avenue Founder Marty Whitman’s “Safe and Cheap” maxim as both companies are nearly “net-cash” (i.e., more cash than debt) with common stocks trading at less than five times trailing earnings, on average.”
6. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 61
Accenture plc (NYSE:ACN) is an American-Irish professional services company, providing technology support, application modernization, enterprise architecture, software and quality engineering, data management, intelligent automation comprises robotic process automation, and natural language processing, among others. Securities filings for the second quarter of 2022 reveal that Soros Fund Management held 119,862 shares of Accenture plc (NYSE:ACN), worth $33.2 million and representing 0.59% of the total portfolio. The hedge fund strengthened its hold on the stock by 4% in Q2 2022.
On September 22, Accenture plc (NYSE:ACN) declared a $1.12 per share quarterly dividend, a 15.5% increase from its prior dividend of $0.97. The dividend is payable to shareholders on November 15. The company’s board has also approved $3 billion in additional share repurchase authorization, bringing total outstanding repurchase authorization to approximately $6.1 billion.
JPMorgan analyst Tien-tsin Huang on October 14 and reiterated an Overweight rating on Accenture plc (NYSE:ACN) but lowered the firm’s price target on the shares to $306 from $329. The analyst revised estimates down to reflect currency headwinds.
Among the hedge funds tracked by Insider Monkey, Accenture plc (NYSE:ACN) was part of 61 public stock portfolios at the end of Q2 2022, compared to 63 in the last quarter. Nicolai Tangen’s Ako Capital is the biggest position holder in the company, with 2.3 million shares worth $636 million.
In addition to Salesforce, Inc. (NYSE:CRM), NIKE, Inc. (NYSE:NKE), and Intuit Inc. (NASDAQ:INTU), Accenture plc (NYSE:ACN) is one of the premier large-cap stock picks of billionaire George Soros.
Here is what Baron Durable Advantage Fund has to say about Accenture plc (NYSE:ACN) in its Q2 2022 investor letter:
“Accenture plc provides consulting and technology services to corporate clients worldwide. Quarterly financial results exceeded Street expectations with 22% revenue growth and 23% operating income growth. However, shares fell 17.5% during the quarter due to adverse foreign currency movements weighing on next quarter’s guidance and investor concerns about macroeconomic uncertainty impacting client demand. We believe demand for Accenture’s services will be resilient over the long term and the company will continue gaining share in a large global market helping its clients digitally transform.”
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Disclosure: None. George Soros Stock Portfolio: Top 10 Large-Cap Stock Picks is originally published on Insider Monkey.
