Filing Reveals Soros Fund Management Places Big Bet On Caesars Entertainment Corporation (Nasdaq: CZR)

in INVESTING IDEAS by

Soros Fund Management filed its 13F with the SEC on Valentine’s day and revealed that the value of its stock listings was down -16.0% quarter-over-quarter. The filing also highlighted a big stock purchase on Caesars Entertainment Corporation (Nasdaq: CZR).


Soros Fund Management’s Latest Form 13F Filing

On February 14th, George Soros’s firm Soros Fund Management filed its quarterly Form 13F regulatory filing. I reviewed the filing to gain a glimpse into the firm’s large portfolio.

Soros Fund Management’s stock portfolio totals $3.5 billion according to the latest filing. The list value of stock holdings is down -16.0% when compared to the last quarter. As a benchmark, the S&P 500 was up 6.1% over the same period.

The Ideas section of finbox.io tracks top investors and trending investment themes. You can get the latest data on the holdings discussed below at the Soros Fund Management page. The following table summarizes the firm’s largest holdings reported in the last filing:

Soros Fund Management Largest Holdings
Ticker Name Holding ($mil) % Of Portfolio
LBRDK LIBERTY BROADBAND CORP $659.5 19.8%
CZR CAESARS ENTMT CORP $436.4 13.1%
AABA ALTABA INC $180.4 5.4%
OSTK OVERSTOCK COM INC DEL $158.0 4.7%
KW KENNEDY-WILSON HLDGS INC $106.9 3.2%
AMLP ALPS ETF TR $86.5 2.6%
IWM ISHARES TR $83.8 2.5%

 

The seven positions above represent 51.3% of the fund’s total portfolio. Investors following the fund were already aware of the large stake in Liberty Broadband Corp (Nasdaq: LBRDK) which currently makes up nearly 20% of Soros’ portfolio. However, the new stake in Caesars Entertainment Corporation was a surprise.


Soros Fund Management’s 7 Largest Purchases

I found Soros Fund Management’s largest buys last quarter by comparing the last two filings:

Soros Fund Management 7 Largest Purchases
Ticker Name Purchased ($mil) % Of Portfolio
CZR CAESARS ENTMT CORP $399.0 13.1%
OSTK OVERSTOCK COM INC DEL $158.0 4.7%
KW KENNEDY-WILSON HLDGS INC $106.9 3.2%
AMLP ALPS ETF TR $86.5 2.6%
HAL HALLIBURTON CO $80.3 2.4%
KRE SPDR SERIES TRUST $37.2 1.1%
TGT TARGET CORP $36.4 1.1%

 

The largest stock purchase for the quarter was Caesars Entertainment Corporation. Soros Fund Management increased its position in the company by $399.0 million and the stock now represents 13.1% of the firm’s portfolio. The next largest stock purchase was Overstock.com Inc (Nasdaq: OSTK). The investment manager increased its position in the company by $158.0 million. The stock now represents 4.7% of the firm’s portfolio.


The Man Who Broke The Bank Of England

George Soros solidified his status in the Investing Hall of Fame in 1992 with the trade that gave him the title “the man who broke the Bank of England.” Taking on a major federal reserve bank and winning while making over $1 billion personally will do that for you.

Soros has often attributed much of his investing success to his Theory of Reflexivity. The key idea behind the theory is that markets are battling two realities; Objective Realities and Subjective realities. Markets reflect beliefs that directly affect the underlying fundamentals and fundamentals, in turn, form the basis for beliefs. This feedback loop sometimes causes prices and expectations to diverge from reality drastically.

“Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.“

Although Soros’ fund performed poorly in Q4’17, it’s always worth taking a closer look at his trading activity considering how well the fund typically performs.


Author: Andy Pai

Expertise: financial modeling, mergers & acquisitions

Andy is the lead reporter on investment management activity through 13F/13D filings with the SEC.

Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights:

  • Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores.
  • Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets.

Andy can be reached at andy@finbox.io.

As of this writing, I did not hold a position in any of the aforementioned securities and this is not a buy or sell recommendation on any security mentioned.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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