7 Soros Fund Management Stocks Trading Below Intrinsic Value

in INVESTING IDEAS by

Pampa Energia S.A. (NYSE: PAM) and TiVo Corporation (NASDAQ: TIVO) are among the top stocks that George Soros owns which appear to have the most upside potential based on underlying fundamentals. Value investors may want to take a closer look at the names below.


Soros Fund Management’s Most Undervalued Holdings

To determine which stocks are trading below their intrinsic value, aka “fair value” I used the finbox.io Fair Value estimates. I also wanted to blend in some indication of which stocks might be ready to make a move up soon because they’re popular with Wall Street analysts.

I calculated an average using the finbox.io fair value upside and analyst upside to create a blended upside which I then used to rank the most undervalued holdings.

Here are the top 7 stocks based on my calculations:

Soros Fund Management Most Undervalued Holdings
Ticker Name Upside (finbox.io) Upside (Analyst Target) Blend Upside
PAM PAMPA ENERGIA S A 83.9% 66.8% 75.4%
TIVO TIVO CORP 32.7% 61.1% 46.9%
SGRY SURGERY PARTNERS INC 59.6% 25.1% 42.3%
CBIO CATALYST BIOSCIENCES INC -45.4% 125.2% 39.9%
LRCX LAM RESEARCH CORP 28.6% 44.5% 36.6%
RDUS RADIUS HEALTH INC 10.7% 61.8% 36.2%
TMHC TAYLOR MORRISON HOME CORP 38.1% 32.1% 35.1%

Pampa Energia S.A. (NYSE: PAM) appears to be the most undervalued stock in the fund. The company has a blended upside of 75.4% relative to its current trading price. Value investors may want to take a deeper dive into the valuation of the company.

TiVo Corporation (NASDAQ: TIVO) appears to be the second most undervalued stock in the portfolio. The company’s blended upside of 46.9% is very intriguing. With 42.3% margin of safety, Surgery Partners, Inc. (NASDAQ: SGRY) is the third most attractively priced security.

Other notable holdings with nice upside potential includes Catalyst Biosciences, Inc. (NASDAQ: CBIO), Lam Research Corporation (NASDAQ: LRCX), Radius Health, Inc. (NASDAQ: RDUS) and Taylor Morrison Home Corporation (NYSE: TMHC).


Why Follow George Soros’ Portfolio?

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.

Now at age 87 and with a net worth around $23 billion, he stands as the 19th richest person in the United States and 29th richest in the world. His philanthropic organization, the Open Society Foundations, supports democracy and human rights in more than 100 countries.

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.“

The ideas section of finbox.io tracks top investors and trending investment themes. You can get the latest data on the holdings discussed above at the Soros Fund Management page.

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 technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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