Soros Fund Management reduced its position in precious metals (GLD) and increased its position in the communication sector (VOX). Communication is a cyclical industry and very capital intensive. A great deal of capital expenditure is required to expand business activity. When the business cycle starts to recover, we see expansion in economic activity. Corporate earnings also pick up at that time, and fund managers shift their investment towards the cyclical sector.
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As the firm shifts its focus towards the communication industry, we can assume that the firm is expecting the business cycle will pick up in the economy (QQQ) (IWM) (VFINX) in the near term. Communication represents 27.2% of the firm’s portfolio. Liberty Broadband (LBRDK) is its top holding and constitutes 23% of the firm’s portfolio. According to an institutional ownership report, Soros Fund Management is the fourth-largest investor in Liberty Broadband, holding about 8.8 million shares worth $608.3 million as of June 30, 2016. The largest investor in LBRDK is Jana Partners with 9.2 million shares as of June 30, 2016.
Dish Network (DISH) constitutes 1.4% of Soros’ portfolio. The firm bought 0.7 million shares worth $37.1 million. In the next part of this series, we will analyze Bridgewater Associates’ holdings as of June 30, 2016.