Soros Fund Management's new trades in Q313 (Part 3 of 6)
Soros Fund Management is a large private fund run by the legendary team of famed investor George Soros. In Q3 2013, it started new positions in Microsoft Corp. (MSFT), Fedex Corp. (FDX), Teva Pharmaceuticals (TEVA), and Halliburton (HAL), and sold Delta Airlines (DAL) and United Continental Holdings (UAL).
Abbreviated financial summaries and metrics for these securities are included below. Detailed analysis and recommendations require a subscription (more information at the bottom of the article).
Why purchase Teva Pharmaceuticals (TEVA)?
Teva is currently facing challenges as it saw stock price declining on the news of CEO and President Jeremy Levin’s resignation on 30 October. It was reported that Levin departed following a feud with the board chairman Philip Frost and his exit was considered to be a setback for the company. Moreover, Teva’s multiple sclerosis drug Copaxone (glatiramer acetate), which is responsible for a very significant contribution to profits and cash flow from operations, faces patent challenges in the United States and other countries. It said in its recent filing that if one or more generic versions of Copaxone were to be approved and Teva’s patents were successfully challenged, or if there were a launch at risk, Teva would face generic competition for Copaxone prior to the expiration of its patents. An earlier than expected generic competition would adversely affect Teva’s results of operations. It also said that in October 2013, the management announced the acceleration of its company-wide cost-savings plan, which will include several initiatives including a reduction in the number of employees.
Teva Pharmaceutical Industries Ltd (Teva) is an Israel-based pharmaceutical and drug company. It develops, produces and markets generic drugs in all treatment categories. It spearheads the development, production and marketing of a wide range of specialty medicines, generic and OTC products, active pharmaceutical ingredients (API) and novel new therapeutic entities.
The Company’s global operations are conducted from North and Latin America to Europe and Asia. Teva operates a number of subsidiaries in such countries as Canada, Croatia, the Czech Republic, France, Germany, Hungary, Ireland, Israel, Japan, Poland, the Russian Federation, Spain, the Netherlands, the United Kingdom and the United States.
Actavis (ACT) and Mylan (MYL) are some of its competitors.
Soros Fund Management was formerly a famed global macro hedge fund run by George Soros, a multi-billionaire investor, who is famous for betting against the British pound earlier in his career. The fund was started in 1969 and in 2010 was reported to be one of the most profitable hedge funds in history, earning over 20% annual returns over 40+ years. The firm formerly was the adviser to the famous Quantum group of funds, but now is private.
Browse this series on Market Realist:
- Part 1 - Soros Fund Management starts new positions in MSFT, FDX, TEVA, HAL, Sells DAL, UAL – 13F Flash (A)
- Part 2 - Soros Fund Management starts new positions in MSFT, FDX, TEVA, HAL, Sells DAL, UAL – 13F Flash (B)
- Part 4 - Soros Fund Management starts new positions in MSFT, FDX, TEVA, HAL, Sells DAL, UAL – 13F Flash (D)