George Soros' Hedge Fund Files 13G's on 3 Positions ~ market folly

Tuesday, October 6, 2009

George Soros' Hedge Fund Files 13G's on 3 Positions

George Soros' hedge fund Soros Fund Management has recently filed three separate 13G filings with the SEC with regards to positions in Emdeon (EM), Interoil (IOC), and Headwaters (HW). Firstly, we'll start with their brand new stake in Emdeon. Soros Fund Management filed this particular 13G due to activity on September 23rd, 2009 and are now disclosing a 7.09% ownership stake in EM with 6,274,000 shares. Again, this is a brand new position for them as they previously did not show a stake in their 13F filing which detailed their portfolio positions as of June 30th, 2009. They have assembled their EM position over the last 3 months.

Secondly, Soros has filed a 13G on Interoil (IOC) due to activity on September 22nd, 2009. They now show a 6.81% ownership stake with 2,918,350 shares. This is an increase of their previous total of 1,860,000 shares back on June 30th. Over the past 3 months they have boosted their holding by 1,058,350 shares.

Lastly, we also see that Soros Fund Management filed a 13G on Headwaters (HW) due to activity on September 22nd as well. Their stake in HW is now 5.31% of the company with 3,200,000 shares. They have increased this position substantially as they previously only held 750,000 shares back on June 30th. In the last 90 days, Soros has added 2,450,000 shares to his position as he seems to have some conviction with this name as of late. All of this activity comes right after we saw Soros start a new position in Exar (EXAR). Check out our post on Soros' portfolio to see what other positions he holds in his hedge fund as well.

We follow Soros' portfolio movements due to his macro sense and his solid track record. We like to see what sectors he is flocking to and these filings are the perfect example of possible themes his firm might be seeing. Soros Fund Management is a true global macro player as they dabble in pretty much any asset class they desire, so just keep that in mind. Soros' thoughts on the current financial landscape are detailed in his latest book, The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means. If you want to get a better sense as to how Soros formulates his investment theses, we highly recommend reading his first book, The Alchemy of Finance. This book is a staple in our recommended reading list and you'll quickly know why.

Taken from Google Finance,

Interoil is "an integrated energy company operating in Papua New Guinea. The Company operates in four business segments: Upstream, Midstream, Downstream and Corporate."

Headwaters is "a diversified company providing products, technologies and services in three industries: building products, coal combustion products (CCPs) and energy. In the building products segment, Headwaters designs, manufactures, and sells architectural stone and resin-based exterior siding accessories (such as window shutters) and other products. In the CCP segment, the Company is a player in the management and marketing of CCPs, including fly ash used as a substitute for portland cement. In the energy segment, Headwaters is focused on reducing waste and increasing the value of energy feedstocks, primarily in the areas of low-value coal and oil. In coal, Headwaters owns and operates several coal cleaning facilities that remove rock, dirt, and other impurities from waste or other low-value coal, resulting in higher-value, marketable coal."

Taken from Yahoo Finance, Emdeon "provides revenue and payment cycle management solutions that connect payers, providers, and patients in the United States healthcare system."

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