George Soros’s Q2 2024 Portfolio Update: What He’s Buying and Selling

Portfolio Overview

Valuation and Holdings

As of June 30, 2024, Soros Fund Management reported holding positions in 177 stocks and ETFs, valued at approximately $5.57 billion. This valuation represents a slight increase from previous quarters, indicating a stable yet strategic approach to portfolio management. The fund’s performance for Q2 2024 was 0.73%, with a year-to-date (YTD) return of 5.5% and a total return of 12.38% for 2023.

Sector Distribution and Market Capitalization

The portfolio is diversified across various sectors, with the largest allocation in the “Others” sector at 36.7%, followed by healthcare (15.5%), technology (11.4%), and consumer cyclical (10.5%). In terms of market capitalization, 42.8% of the portfolio is invested in large-cap and mega-cap stocks, with 38.6% unallocated. This distribution reflects Soros’s balanced approach, combining stability with growth potential.

Key Acquisitions

New Positions

In Q2 2024, Soros Fund Management made several notable new investments, reflecting a strategic shift towards smaller-cap companies with higher growth potential. The most significant new positions include:

• Alibaba Group Holding Ltd (BABA): Soros acquired 1,025,000 shares, representing 1.69% of the portfolio, valued at $73.8 million. This investment indicates confidence in Alibaba’s growth prospects despite regulatory challenges in China.
• ChampionX Corporation (CHX): The fund purchased 2,464,910 shares, accounting for 1.87% of the portfolio, totaling $81.86 million. ChampionX, a provider of oilfield technology solutions, aligns with Soros’s interest in energy and industrial sectors.
• SPDR S&P 500 ETF Trust (SPY): Soros added 450,000 shares, representing 5.6% of the portfolio, valued at $244.9 million. This significant investment in an ETF suggests a strategic move to gain broad market exposure.

Increased Positions

Soros also increased his holdings in several existing positions, indicating continued confidence in these investments. The most notable increases include:

• NextEra Energy (NEE): The largest increase was in NextEra Energy, with a 5,200% increase to 900,000 shares. This substantial addition reflects a strong belief in the renewable energy sector’s growth potential.
• Ascendis Pharma A/S (ASND): Soros increased his position by 2,813% to 100,000 shares. Ascendis Pharma, a biopharmaceutical company, aligns with Soros’s interest in innovative healthcare solutions.
• AstraZeneca PLC (AZN): Holdings were increased by 2,051,538 shares, totaling 2,451,538 shares, a 512.88% increase, valued at $191.2 million. This significant increase underscores confidence in AstraZeneca’s pharmaceutical pipeline and market position.

Key Divestments

Closed Positions

Soros Fund Management also made several strategic exits from existing positions, reflecting a reallocation of capital towards higher growth opportunities. The most notable closed positions include:

• American Equity Investment Life Holding Co (AEL): Soros sold all 1,919,302 shares, impacting the portfolio by -2.53%. This divestment suggests a strategic shift away from the insurance sector.
• Aramark (ARMK): The fund liquidated all 2,059,000 shares, resulting in a -1.57% impact on the portfolio. This exit indicates a move away from the food service and facilities management sector.

Reduced Positions

In addition to closing positions, Soros significantly reduced his holdings in several key stocks. The most notable reductions include:

• Alphabet Inc (GOOGL): Holdings were reduced by 575,657 shares, a -38.62% decrease, impacting the portfolio by -2.04%. This reduction suggests a strategic reallocation away from large-cap tech stocks.
• Novo Nordisk A/S (NVO): Soros decreased his position by 622,616 shares, a -78.06% decrease, impacting the portfolio by -1.87%. This substantial reduction indicates a shift away from the pharmaceutical sector.

Strategic Shifts and Market Trends

Reallocation from Large-Cap Tech to Smaller-Cap Growth

One of the most notable trends in Soros’s Q2 2024 portfolio update is the reallocation from large-cap tech stocks to smaller-cap companies with higher growth potential. This strategic shift is evident in the significant reductions in Alphabet (GOOGL) and Amazon (AMZN) and the new investments in companies like Alibaba (BABA) and ChampionX (CHX).

Focus on Renewable Energy and Healthcare

Soros’s increased positions in NextEra Energy (NEE) and Ascendis Pharma A/S (ASND) reflect a strong focus on renewable energy and healthcare sectors. These sectors are poised for significant growth, driven by global trends towards sustainability and innovation in medical treatments.

Diversification through ETFs

The substantial investment in the SPDR S&P 500 ETF Trust (SPY) indicates a strategic move to diversify the portfolio and gain broad market exposure. This investment provides a hedge against market volatility and aligns with Soros’s balanced approach to risk management.

Performance Analysis

Top Performers

The top-performing stocks in Soros’s portfolio for Q2 2024 include:

• Insmed Inc: With a remarkable 151.9% increase, Insmed Inc emerged as the top performer. This biopharmaceutical company focuses on developing treatments for rare diseases, aligning with Soros’s interest in innovative healthcare solutions.
• Broadcom Inc: Broadcom Inc saw a 19.4% increase, reflecting strong performance in the semiconductor sector. This investment underscores Soros’s confidence in technology and infrastructure.
• Alphabet Inc: Despite the reduction in holdings, Alphabet Inc still delivered an 18.2% increase, highlighting the resilience of large-cap tech stocks.

Top Losers

The portfolio also experienced some underperforming stocks, including:

• Pacific Biosciences of California: This stock saw a -62.7% decrease, reflecting challenges in the biotechnology sector.
• Evolus Inc: Evolus Inc experienced a -22.4% decline, indicating volatility in the aesthetic medicine market.

Conclusion

George Soros’s Q2 2024 portfolio update reflects a dynamic and strategic approach to investing, characterized by significant acquisitions and divestments. The reallocation from large-cap tech stocks to smaller-cap companies with higher growth potential, coupled with a focus on renewable energy and healthcare, underscores Soros’s forward-looking investment strategy. The substantial investment in the SPDR S&P 500 ETF Trust (SPY) indicates a strategic move to diversify the portfolio and gain broad market exposure.

Overall, Soros’s portfolio reflects a balanced approach, combining stability with growth potential. The strategic shifts and market trends observed in Q2 2024 highlight Soros’s ability to adapt to changing market conditions and capitalize on emerging opportunities. As of September 9, 2024, Soros Fund Management continues to be a significant player in the financial world, with a portfolio that reflects both innovation and resilience.