MARKETS

Significant Changes in Investor George Soros’s Fund, Sells Entire Tesla Stake

Soros Fund made some significant changes to its investment portfolio, including a sale of its stake in Tesla.

Billionaire investor George Soros’s fund, Soros Fund Management, has significantly changed its investment portfolio, including a complete cash-out on its stake in Tesla.

According to a 13f filing with the Securities and Exchange Commission (SEC), the fund sold off its entire position in Tesla during the first quarter of this year. At the beginning of the year, the position was worth around $14.3 million, but at Tesla’s peak in Q1, it was valued at approximately $28.3 million.

During the second quarter of 2022, the fund had been gradually increasing its holdings of Tesla stock and had accumulated around 132,000 shares by the end of last year. By selling its Tesla stake, Soros Fund Management likely realized significant gains from the surge in the electric vehicle maker’s stock price this year. Since the beginning of the year, Tesla shares have surged by 56%, although there has been a slight dip since the end of Q1.

In addition to the Tesla selloff, the Soros Fund also reduced its holdings in Rivian, an electric-vehicle startup, by 75%. By the end of the first quarter, Rivian stock accounted for just 1.1% of the fund.

This move comes after a significant decline in the Soros Fund’s overall valuation since the fourth quarter of last year. Before that, the fund had consistently outperformed the market every quarter since the first quarter of 2018. The fund’s cumulative worth at the end of Q1 was $6.48 billion, representing a substantial contraction from the previous quarter.

Apart from the Tesla and Rivian transactions, Soros Fund Management also made other adjustments to its portfolio. The fund reduced its holdings in First Horizon Bank by 14.37%, ending up with 7.31 million shares. This move occurred amidst significant turmoil in the banking sector, caused by Silicon Valley Bank’s unexpected collapse in March, which affected the industry.

On the other hand, the fund made new purchases during the quarter, acquiring shares in retail giant Walmart, streaming service Netflix, and Chinese e-commerce company JD.com. These additions reflect the fund’s confidence in these companies and their growth potential.

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