Soros Fund Management’s Major Picks amid Trade War


Nov. 20 2020, Updated 5:26 p.m. ET

George Soros is a prominent activist hedge fund manager in the hedge fund management industry. His buying and selling strategies were successful in the past year. Soros Fund Management changed its top buying and selling instruments in the last quarter amid the trade war. Early this year, Soros said that the US and China are in a cold war that could “turn into a hot one.”

The escalating trade war increased recession fears. Ray Dalio sees a 40% chance of a recession before the 2020 presidential election. He said that the economy could be the worst in the next two to three years. In fact, Goldman Sachs doesn’t expect the trade war to stop before the election.

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Top buys

According to the latest 13F filing report, Soros Fund Management’s top five buys in the second quarter were Invesco QQQ Trust (QQQ), Alphabet (GOOGL), eBay (EBAY), Symantec (SYMC), and Red Hat (RHT). The first four holdings were new investments for the firm in the second quarter. However, Soros Fund Mangement increased its holdings in Red Hat from 1.38% in the first quarter to 2.28% in the second quarter.

The investment in QQQ represents nearly 5.10% of the firm’s portfolio holdings in the second quarter with 1.1 million shares. The strong and fresh investment in QQQ and Alphabet indicates that the firm is optimistic about the US technology sector. Recently, Goldman Sachs named Alphabet among its top picks during the trade war.

QQQ has returned nearly 22.2% on a year-to-date basis as of August 19. Alphabet has returned 14.9% during the same time period. The Technology Select Sector SPDR Fund (XLK) has returned 28.2% during the same period.

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Soros Fund Management’s top holdings

Soros Fund Management’s top five holdings in the second quarter were Liberty Broadband (LBRDK), VICI Properties (VICI), the SPDR S&P 500 ETF Trust (PUT), Caesars Entertainment (CZR), and QQQ. These holdings represent 17.69%, 10.59%, 7.69%, 5.27%, and 5.09%, respectively, in the second quarter. According to Nasdaq’s Institutional Ownership report, Soros Fund Management is the fourth-largest investor in Liberty Broadband (LBRDK) with 7.2 million shares in the second quarter. Vanguard Group is the largest investor in Liberty Broadband with 13.2 million shares in the second quarter.

Top sells

Soros Fund Management’s top five sells in the second quarter were Ceridian HCM Holding (CDAY), GCI Liberty (GLIBA), Coupa Software (COUP), salesforce.com (CRM), and TiVo’s PRN (TIVO). The firm reduced its holdings in these stocks to 1.96%, 1.34%, 1.27%, 1.15%, and 1.10%, respectively, in the second quarter.


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