10 Stocks George Soros Is Buying for 2016
There's nothing boring about George Soros' investing -- at least not for those who follow his stock picks each quarter.
The Hungarian-born investor and philanthropist has amassed a more than $20 billion fortune. Over the years, he has made enormous plays in bonds, stocks and currencies. A 1992 short sale on the British pound earned him the title of "The Man Who Broke the Bank of England."
As exciting as Soros' investing career may sound, he believes it should be just the opposite. "If investing is entertaining, if you're having fun, you're probably not making any money," he once said. "Good investing is boring."
Soros may not be amused by his investment moves, but there are many people out there who are.
Although he stepped back from managing clients' money in 2011 -- and declared his retirement again in 2015, saying "this time it is final" -- Soros Fund Management is still alive and kicking. And Soros, who is still listed as the firm's investment manager in public filings, is very likely still involved.
His latest 13F filing, corresponding to Dec. 31, reflects $6 billion invested across 244 holdings.
A number of the positions listed are recently initiated ones. Here are 10 of Soros' biggest new buys from the fourth quarter of 2015.
1. Synchrony Financial (SYF) is Soros' biggest new buy of the fourth quarter. As of Dec. 31, he owns 7.1 million shares, giving the company a 4% allocation in his public equity portfolio.
(all charts via ycharts)
Synchrony Financial operates as a consumer financial services company in the U.S. It has a $21.8 billion market cap and trades at a P/E of 9.86.
Of 13 analysts covering the stock, 11 rate it as a strong buy, one as a moderate buy and one as a hold. TheStreet ratings gives it a C-.
TheStreet's Jim Cramer recently commented on Synchrony Financial. "That one has been clobbered but I think they're doing well," he said.
2. Soros picked up 930,000 shares of the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) last quarter. It now comprises 1.4% of his holdings.
The iShares iBoxx $ High Yield Corporate Bond ETF is an exchange-traded fund that tracks the investment results of the Markit iBoxx USD Liquid High Yield Index, which consists of liquid U.S. dollar-denominated, high-yield corporate bonds. Soros wasn't alone in buying into the ETF last quarter -- both Naya Capital Management UK and Black Maple Capital Management initiated positions as well.
3. Columbia Pipeline Group (CPGX) is another of Soros' new buys. The stock now has a 1.4% allocation in his public equity portfolio, as he picked up 3.7 million of its shares last quarter.
Columbia Pipeline Group owns and operates natural gas pipelines, integrated with underground storage systems in North America, and offers a range of services to local gas distribution companies and users of natural gas. It has a $5.3 billion market cap.
Of five analysts covering the stock, two rate it as a strong buy, one a moderate buy and two a hold.
4. Soros picked up 1.2 million shares of Marathon Petroleum (MPC) , giving the stock a 1.2% allocation in his portfolio.
Marathon Petroleum, together with its subsidiaries, engages in refining, marketing, retailing and transporting petroleum products primarily in the U.S. It has a $17.3 billion market cap and trades at a P/E of 6.19.
Of 11 analysts covering the stock, seven rate it a strong buy, one a moderate buy and three a hold. TheStreet Ratings gives it a C+.
Cramer appears to be in disagreement with Soros' Marathon Petroleum take. "I see the margins under pressure," he said in a recent episode of "Mad Money." "I say sell, sell, sell."
5. Soros initiated a new position in Google parent company Alphabet (GOOGL) (GOOG) last quarter. He purchased 65,570 of the tech giant's shares, giving in a 1% allocation in his public equity portfolio.
Alphabet, through its subsidiaries, builds technology products and provides services to organize information. It has a $494 billion market cap and trades at a P/E of 31.42.
Of 34 analysts covering the stock, 29 rate it as a strong buy, three a moderate buy and two a hold. TheStreet Ratings gives it a B+.
Alphabet is part of Jim Cramer's Action Alerts PLUS portfolio. He recently said of the stock:
"The moment the market took a turn for the worse this year (starting on the first day of trading), the group's legendary 2015 outperformance worked against it, placing a gorilla-sized target on the back of each respective stock. The same investors who had piled into the names in droves and made money hand over fist have sold out of their positions expeditiously as they actively look to take profits on the still-massive gains they had generated on the respective stocks. We have refused to trade around these names as we view both Alphabet and Facebook as long-term core holdings, not event- or technical-driven trading vehicles. As such, we reiterate our $900 long-term target."
6. Soros picked up 850,000 shares of Ferrari (RACE) following the company's October U.S. IPO. The stock now comprises 0.8% of his portfolio.
Ferrari is an Italian luxury sports car manufacturer based in Maranello. It has a $6.7 billion market cap.
Of four analysts covering the stock, two rate it as a strong buy, one a moderate buy and one a hold. The stock soared on news of Soros' buy.
7. Baker Hughes (BHI) has a 0.6% allocation in Soros' portfolio as of Dec. 31. During the last few months of the year, he purchased 685,157 of the company's shares.
Baker Hughes supplies oilfield services, products, technology, and systems to the oil and natural gas industry worldwide. It has a market cap of $18 billion.
Of 20 analysts covering the stock, 12 rate it as a buy, two a moderate buy, five a hold and one a moderate sell. TheStreet Ratings gives it a D.
In early February, Cramer characterized investing in Baker Hughes as a catch-22. "This is the target of Halliburton. You just want to know, does it matter if these companies get together" he said, referring to Halliburton's proposed acquisition of the company.
8. Soros purchased 97,318 shares of Equinix Inc. (EQIX) , giving it a 0.6% allocation in his public equity portfolio as of the end of the fourth quarter.
Equinix is a publicly owned real estate investment trust. It has a $16.7 billion market cap.
Of 15 analysts covering the stock, 11 rate it as a strong buy, one as a moderate buy and three as a hold. TheStreet Ratings gives it a C.
9. NXP Semiconductors (NXPI) is another of Soros' latest picks. He purchased 330,161 shares of the company, which now comprises 0.5% of his portfolio.
NXP Semiconductors a semiconductor company, provides high-performance mixed signal and standard product solutions for radio frequency, analog, power management, interface, security and digital processing products worldwide. It has a $23.7 billion market cap and trades at a P/E of 11.38.
Of 15 analysts covering the stock, 13 rate it as a strong buy and two as a hold. TheStreet Ratings gives it a B.
10. Soros ended the quarter with 792,504 shares of Sabre Corp. (SABR) , giving the company a 0.4% allocation in his portfolio.
Sabre Corp. provides technology solutions to the travel and tourism industry worldwide. It operates in two segments: travel network, and airline and hospitality solutions. He has a $7.3 billion market cap and trades at a P/E of 29.74.
All of nine analysts covering the stock rate it as a strong buy. TheStreet Ratings gives it a C.
Courtesy of thestreet.com