Investing Giant George Soros Has Bought Teva, Cadence, and Regions Financial

See if any of them make sense for your portfolio.

Feb 28, 2014 at 2:18PM

The latest 13F season has arrived, when many money managers issue required reports on their holdings. It can be worthwhile to pay attention, as you might get an investment idea or two by seeing what some major investors have been buying and selling.

For example, consider George Soros, known to some folks these days for his politics and philanthropy. His fame initially stemmed from his wealth, though, which is a result of his outstanding investing prowess. He founded Soros Fund Management back in 1973, and under its umbrella, the Quantum funds racked up an amazing record, reportedly averaging close to 20% annual growth over four decades. As The New York Times has explained: "His huge gains have come from macro bets, which aim to profit from global economic trends by trading currencies, commodities, bonds and other securities. Mr. Soros made his name, however, betting on currencies." Soros has noted, though, that hedge funds can't beat the market due to fees.

Soros Fund Management's reportable stock portfolio totaled $11.8 billion in value as of Sept. 30, 2013. Its latest 13F report shows that it established new positions in Cadence Design Systems (NASDAQ:CDNS) and Regions Financial Corporation (NYSE:RF) and increased its shares of Teva Pharmaceutical Industries (NYSE:TEVA) by 158%, leaving it as its third-largest holding.

With a market capitalization near $4.5 billion, Cadence Design Systems is a relatively small company, specializing in design automation software and design intellectual property for semiconductors, among other things. (Its processors are in Microsoft's Xbox One, for example.) The company's fourth quarter featured revenue up 9%, slightly beating  estimates, and net income down but in line with expectations. Management noted: "2013 was a great year for Cadence. We introduced six new innovative, internally developed products. We made three important acquisitions to build out our fast growing IP portfolio."

Southeast-focused regional bank Regions Financial, yielding 1.1%, is trading near a 52-week high. (It tripled its dividend in 2013.) The bank emerged from the recent financial crisis in relatively good shape, having repaid its TARP obligation back in 2012. It did well in 2013, improving its debt and capital structure and lowering its funding costs. Its net interest margin has increased steadily in recent quarters. Regions Financial's fourth quarter was a bit mixed, with earnings down from year-ago levels but full-year earnings up over the previous year, and loans rising as well. Bulls like the bank's mobile ambitions and its innovations, such as its Regions Savings Secured Loan, a new fixed-rate installment loan responding to demand for (dangerous) payday loans.

Teva has reported some mixed results recently. Its oral multiple sclerosis drug laquinimod received a negative opinion from Europe's regulators in January, but last week it received a positive opinion from Europe for its asthma and COPD treatment, DuoResp Spiromax. Also in 2014, the FDA approved its supplemental new drug application for a less frequently administered Copaxone formulation, targeting multiple sclerosis (MS) and gave full approval to oncology drug Synribo. Bulls like Teva Pharmaceutical Industries' strong position in generic drugs, as it boasts more than 140 product registrations awaiting FDA approval. Still, it faces patent expirations and competing drugs, as do its peers. Teva Pharmaceuticals recently bought NuPathe and its FDA-approved patch for migraines. Its stock yields 2.4%.

An even more appealing biotech investment
The best way to play the biotech space is to find companies that shun the status quo and instead discover revolutionary, groundbreaking technologies. In the Motley Fool's brand-new FREE report "2 Game-Changing Biotechs Revolutionizing the Way We Treat Cancer," find out about a new technology that big pharma is endorsing through partnerships, and the two companies that are set to profit from this emerging drug class. Click here to get your copy today.

Selena Maranjianwhom you can follow on Twitter, owns shares of Microsoft. The Motley Fool recommends Teva Pharmaceutical Industries and owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information

Compare Brokers