Soros Fund Management used to be one of the most profitable hedge funds in the country, but it seems George Soros’ holdings took a beating in the most recent quarter as the fund lost nearly 14% of its value. In the last year, Soros Fund Management has fallen by 2.28%. Soros no longer plays an active role in managing the hedge fund but his fund scaled back, or sold out completely, several of the stocks in his portfolio including Herbalife Ltd. (NYSE:HLF) and Facebook Inc (NASDAQ:FB), while adding some new players such as Netflix, Inc. (NASDAQ:NFLX).
Soros Fund exited its position in the nutrition supplement company by selling roughly two million shares after a two year run with the stock in its holdings. Herbalife has always caused a ruckus between investors since rival investor Bill Ackman has constantly accused the company of running a pyramid scheme and being a fraud. Ackman has been so adamantly against the company that he took a $1 billion short position on the stock three years ago. On the other hand, Soros and Icahn have remained bullish advocates for the company.
According to TipRanks, most analysts are bullish on Herbalife. According to the 4 analysts who rated the stock in the last 3 months, 3 have rated it a Buy while 1 remains neutral. The average 12-month price target is $73, marking a 34% potential upside from where the stock last closed.
The fund cut its stake in Facebook by nearly one third. Soros now owns more than 1.8 billion shares of the social media giant, valued at over $162 million. Although this company comprises only about 2.45% of Soros’ holdings, it is the fourth largest component of his portfolio. This move comes after the Soros Fund loaded up on Facebook shares in the spring quarter, when it increased its holdings by nearly 2,000%. However due to recent portfolio reshuffling, at that point the stock was a smaller part of his portfolio than it is now.
Analysts are overwhelmingly bullish on Facebook due its user growth and advertising potential. According to TipRanks, 33 out of 34 analysts rate the stock a Buy, while only 1 analyst stays on the sidelines. The average 12-month price target between these 34 analysts is $123.44, marking a 17% potential upside from where the stock last closed.
Soros bought up more than 317k shares of the video streaming company in the most recent quarter. The shares are valued at over $32 million and comprise only 0.50% of his holdings. Netflix has taken the country by storm and it seems that even Soros is jumping on the bandwagon. The video streaming company continues to produce impressive original content and implement efforts to expand internationally.
According to the 29 analysts polled by TipRanks in the last 3 months, 21 are bullish on Netflix, 2 are bearish, and 6 remain on the sidelines. The average 12-month price target for the stock is $128.04, marking a 9.34% potential upside from where the stock last closed.