George Soros (Trades, Portfolio), the renowned financier and chair of Soros Fund Management LLC, recently disclosed his firm's portfolio for the second quarter of 2023. Born in Budapest in 1930, Soros is one of history's most successful financiers, and his views on investing and economic issues are widely followed. He established the Quantum Group of Funds hedge fund in 1973, which famously shorted the British Pound in 1992. In 2011, Soros converted his hedge fund into a family investment office, with Soros Fund Management serving as the advisor to the fund.
Overview of Soros' Q2 2023 Portfolio
As of June 30, 2023, Soros' portfolio contained 135 stocks with a total value of $4.13 billion. The top holdings were LQD (8.31%), HZNP (8.20%), and GOOGL (4.13%).
Top Three Trades of the Quarter
The following were Soros' top three trades of the quarter:
First Horizon Corp (FHN, Financial)
Soros sold out of his 7,309,487-share investment in First Horizon Corp (FHN), which previously held a weight of 3.66% in the portfolio. The shares traded for an average price of $13.47 during the quarter. As of August 15, 2023, FHN had a market cap of $7.21 billion and a stock price of $12.905, reflecting a -42.52% return over the past year. GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 5 out of 10. In terms of valuation, FHN has a price-earnings ratio of 6.83, a price-book ratio of 0.89, a PEG ratio of 8.54, and a price-sales ratio of 2.17.
PDC Energy Inc (PDCE, Financial)
Soros established a new position in PDC Energy Inc (PDCE), purchasing 1,393,467 shares and giving the stock a 2.4% weight in the equity portfolio. The shares traded for an average price of $67.51 during the quarter. As of August 15, 2023, PDCE had a market cap of $6.43 billion and a stock price of $73.85, reflecting a 19.76% return over the past year. GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 7 out of 10. In terms of valuation, PDCE has a price-earnings ratio of 3.69, a price-book ratio of 1.45, an EV-to-Ebitda ratio of 2.41, and a price-sales ratio of 1.75.
iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD, Financial)
During the quarter, Soros bought 750,000 shares of iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD), bringing his total holding to 3,173,390 shares. This trade had a 1.96% impact on the equity portfolio. The stock traded for an average price of $107.09 during the quarter. As of August 15, 2023, LQD had a market cap of $34.75 billion and a stock price of $104.61, reflecting a -4.76% return over the past year.
In conclusion, Soros' Q2 2023 portfolio reflects his firm's strategic investment decisions, with a focus on both equity and corporate bond markets. These moves provide valuable insights into the investment strategies of one of the world's most successful financiers.
