On Monday (13.02) we were able to learn about the SOROS FUND MANAGEMENT fund's 13F report, a periodic report to the US Securities and Exchange Commission (SEC). The Form 13F contains information about the value and number of shares held, as well as the value of investments and the type of investment assets the investor has in its portfolio, for the last quarter. What has George Soros' fund invested in?
Who is George Soros?
George Soros was born in Budapest in 1930 to a Jewish family. During World War II, his family avoided deportation to concentration camps through false documents and hiding. Soros later studied at the London School of Economics, where he met the philosopher Karl Popper, whose ideas had a strong influence on his thinking. In the 1960s Soros embarked on a career as an investor and founded the Quantum Fund hedge fund, which brought him huge profits and made him one of the richest people in the world.
Soros has also gained notoriety for his philanthropic activities, in which he supports projects for, among other things, democracy, human rights and press freedom around the world. One of the most important of these is the Open Society Foundations.
Soros has been criticised by many individuals and groups for his influence on politics and the media. Some critics have accused him of manipulating financial markets and even attempting to overthrow state governments. He has also faced criticism for his involvement in migration and refugee issues. Today, Soros is still considered one of the most influential people in the world.
SOROS FUND MANAGEMENT LLC is a private investment firm founded by a billionaire in 1969 and specialises in investments in various asset classes including equities, bonds, real estate and commodities. SOROS FUND MANAGEMENT LLC manages investment funds for institutional clients, such as pension funds and hedge funds, as well as for its own family.
George Soros is known for his active approach to investing, which involves conducting intensive market analysis and using knowledge of political and economic circumstances to make investment decisions, also taking into account analyses of market trends and the macroeconomic situation. Soros focuses on long-term investments, yet his firm has become known for conducting speculative activities in financial markets, including his involvement in the spectacular sale of the pound sterling in 1992, which appears to have led to the UK not adopting the euro. At the same time, however, it is worth noting that Soros' investment style has evolved, and that SOROS FUND MANAGEMENT LLC itself invests in a variety of asset classes in line with market trends and economic circumstances.
What does the SOROS FUND MANAGEMENT fund invest in?
Soros' fund currently has as many as 208 positions of various types of assets. In Q4 2022, it concluded as many as 85 new positions in its portfolio. The largest purchase occurred on units of the IBOXX INV CP ETF (LQD), which tracks the iBoxx USD Investment Grade Corporate Bond index. This index contains bonds with a duration of more than one year issued by companies with high credit security. Interestingly, at the same time he bought put options (PUT) on this fund of the same value. This appears to be a hedge against interest rate volatility while receiving a dividend from the fund, which is at 3.4% per annum. The two positions together represent 7%, of the value of the fund's portfolio. In addition, it entered into a short position on units of the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) in the form of a PUT option. The position represents another 2% of the fund's portfolio. This appears to be an attempt to bet on further interest rate rises by the Fed, which could cause declines in bond prices.
Source: Conotoxia MT5, LQD, Daily
The second largest purchase Soros made in the last quarter of 2022 was shares in First Horizon Corporation (1stHorizon), a US-based holding company that offers a variety of banking and financial services to individuals, businesses and institutions in the United States. The investment in the company currently represents 2.9% of the fund's value.
Source: Conotoxia MT5, 1stHorizon, Daily
Soros appears to be fixated on gains in the S&P 500 (US500) index. In Q4 2022, he purchased units of the SPDR S&P 500 ETF Trust (SPY) representing 1.8% of the portfolio value.
Source: Conotoxia MT5, US500, Daily
Grzegorz Dróżdż, Market Analyst of Conotoxia Ltd. (Conotoxia investment service)
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