George Soros' Favorite Picks: 3 Stocks the Billionaire Keeps Buying

Investment Overview - George Soros' hedge fund is making significant investments in stocks, with a notable focus on small-cap stocks and specific companies like Splunk, AerCap Holdings, and Alphabet [1][2][6] Splunk Acquisition - Soros Fund Management held 1.6 million shares of Splunk valued at $240 million, representing over 4.5% of the total portfolio, before Cisco acquired the company for $157 per share, yielding a profit from an average buy price of $141 [1] Small-Cap Stocks - Soros owns 1.2 million shares of the iShares Russell 2000 ETF, which tracks the 2,000 smallest stocks in the Russell 3000 index, indicating a strategic bet on the resurgence of small-cap stocks [2] - Historically, small-cap stocks have outperformed mid and large-cap stocks 60% of the time over a 75-year study, and the Russell 2000 has recently outperformed the S&P 500 [2] Notable Holdings in iShares Russell 2000 ETF - The largest stock in the Russell 2000 index is Super Micro Computer with a market cap of $55.5 billion, followed by Microstrategy at $24 billion, contributing to the ETF's strong performance [3] AerCap Holdings Performance - AerCap Holdings has a market valuation of $18 billion, with shares up 18% year-to-date and 57% over the past year [4] - The company reported fourth-quarter revenue of $1.9 billion, slightly below expectations, but earnings per share of $3.11 exceeded projections [5] - Soros Fund Management holds nearly 2.5 million shares of AerCap, valued at $183.5 million, representing a 40% gain on his holdings [5] Alphabet's Position - Soros holds 1.2 million shares of Alphabet, valued at $170.3 million, constituting a 3.2% position in the fund, despite the stock being down 13% from the average buy price [6] - Alphabet maintains a 91% market share in search, and despite recent advertising revenue disappointments, it is expected to benefit from increased ad spending in an election year [7] - Google Cloud is growing rapidly, outpacing competitors like Amazon AWS and Microsoft Azure, indicating potential for future growth [7]