One of the most successful financiers in history,
employs more of a speculative macro than value philosophy toward
investing. His self-developed market theory, known as
"reflexivity," is composed of "a set of ideas that seeks to
explain how a feedback mechanism can skew how participants in a
market value assets on that market."
Nonetheless, Soros places some degree of emphasis on the
fundamentals of his investments. These are the stocks in his
portfolio that are trading for less than the average price
paid for them: Tyco International Ltd. (
), Skyworks Solutions (
), Molycorp Inc. (
) and Constant Contact Inc. (
Soros closed down his Quantum Fund in 2011 to avoid new
regulations that require large hedge funds to register with the
Securities and Exchange Commission (SEC). He then opened a new
hedge fund, Soros Fund Management, which he still has a hand in
The new fund's portfolio totals $6.2 billion in value, contains
160 stocks and had a 53% third-quarter turnover.
Tyco International Ltd. (
With an 11 percent market share, Tyco is the world's largest
exclusively fire protection and security company. It has more
than three million companies as clients in almost 50 countries.
The company's stock dropped sharply on Sept. 28 when it completed
the spinoff of the ADT Corporation and Tyco Flow Control
International, its wholly owned subsidiaries, and cut back its
fourth quarter guidance.
Due to an inability to collect on some aged receivables related
to Chinese security contracts, the company reduced its fourth
quarter Fire & Security segment revenue from approximately
$2.75 billion to $2.5 billion. For the same reason, it also
reduced its expected operating margin from 13.5% to 11.2% to 12%,
and reported several other reductions.
After the spinoff, Tyco significantly re-ordered its business. In
the past five years, its revenue has been declining at an annual
rate of 8.3%, EBITDA at 4% and book value at 13.5%. Tyco has a
P/E of 29.4, P/B of 2.8 and P/S of 1.3.
Skyworks Solutions (
Skyworks Solutions' price has declined 23.7% since Soros bought
225,000 shares in the third quarter for $28 per share on average.
It trades for $20.45 on Tuesday. The stock is down almost 23% in
the past six months.
data by GuruFocus.com
Skyworks is an analog semiconductor company, headquartered in
Massachusetts with facilities across Asia, Europe and North
The company's stock experienced a significant decline on Sept.
20, the day it announced fourth quarter earnings at the high end
of its range. It said it anticipated $420 million in revenue, at
the high end of its guidance range of $415 to $420 million, and
non-GAAP diluted earnings per share of $0.52, above guidance of
$0.50 and $0.51.
On Nov. 1 it announced official fourth quarter results including
$421 million in revenue, an 8 percent sequential increase, and
$0.53 in non-GAAP EPS. The company said it is capitalizing on
"interrelated macro trends" such as social networking,
cloud-based content and audio and video streaming in smartphones,
tablets, untrabooks and e-readers and supporting network
In the past five years, the company has grown revenue at an
annual rate of 13%, EBITDA at a rate of 35.6%, free cash flow at
a rate of 33% and book value at a rate of 15.2%. The company has
a P/E of 20.1, P/B of 2.1 and P/S of 2.8.
Molycorp Inc. (
Molycorp's stock price has decreased 22.4% since he bought 80,000
shares in the third quarter for an average price of $15 per
share. It trades for $10.72 on Tuesday, after its stock fell
almost 59% over the past year.
MCP data by GuruFocus.com
Molycorp describes itself as "the only U.S.-based company that is
fully integrated across the rare earth mine-to-magnets supply
chain," with offices in the U.S., Europe and Japan. It produces
rare earths and metals that are used in clean energy
technologies, fiber optics, lasers, hard disk drives, defense
applications, water treatment technology and other technologies,
The company's stock price has been declining since early in 2011,
when it reached as high as almost $75. In the third quarter, the
company's revenue increased 49% year over year to $205.6 million,
and net loss fell to $15.45 million, compared to net income of
$45.1 million a year previously.
Our production ramp up continues to build to Phase 1 levels at
Mountain Pass, and we remain on target for full Phase 1
operations in the fourth quarter," said Molycorp president and
CEO Mark Smith. "As we execute our global vertical integration
plan, we will continue to see solid revenue from our Molycorp
Canada operations, and we will increasingly realize the benefits
of Project Phoenix and the ramping of our production volumes.
This should result in higher sales and gross margins, and both
improved and sustainable bottom-line performance, due to our
low-cost production and our access to markets that require high
value, specialty-engineered materials."
The company's cash in the third quarter declined to about $524.5
million from $629.92 million a year previously. Long-term
liabilities and debt increased to $1.41 billion, from about $243
million a year previously.
Constant Contact Inc. (
Constant Contact's stock price has declined 21.4% since Soros
purchased 450,000 shares in the third quarter for about $18.50 on
average. It trades for $14.48 on Tuesday, after declining almost
36% over the past year.
CTCT data by GuruFocus.com
Constant Contact is a suite of online market and email dispersion
tools, that services more than half a million small businesses,
non-profits and associations worldwide.
The company's revenue in the third quarter increased 17% year
over year to $63.8 million, with GAAP net income increasing to
$6.6 million, from $5.4 million a year previously. The company
underperformed its expectations in new customer additions and
conversion of trailers into paying customers. The decline new
customers forced the company to lower its outlook for the fourth
"We have a strong brand and are the trusted marketing provider to
more than half a million small businesses. Our opportunity is
expansive and we continue to invest to drive the transformation
of Constant Contact into a multi-product company. This evolution
will take a bit longer than we had envisioned," Gail Goodman,
chief executive officer of Constant Contact. "Looking ahead, we
are focused on growing our email business while testing,
iterating and scaling our newer offerings."
Constant Contact has a P/E of 17.6, P/B of 2.3 and P/S of 1.9.
See George Soros' portfolio here. Also check out the Undervalued
Stocks, Top Growth Companies and High Yield stocks of George
Soros.About GuruFocus: GuruFocus.com tracks the stocks picks and
portfolio holdings of the world's best investors. This value
investing site offers stock screeners and valuation tools. And
publishes daily articles tracking the latest moves of the world's
best investors. GuruFocus also provides promising stock ideas in
3 monthly newsletters sent to