George Soros is among the most renowned and controversial hedge fund managers on the planet. Well known for his political affiliations, which are now opposite to a number of politically-charged CEOs such as Elon Musk, Soros has become an interesting name to follow not only due to his outspoken political views and his philanthropic efforts, but his investing success over many decades. 

Through his Quantum Fund, Soros has provided impressive returns to investors over very long periods of time. This man has employed a number of unique trading strategies over the years, often pursuing major bets on currencies and other trades other hedge fund managers wouldn’t employ. These sorts of outlandish bets led some investors to call Soros “the world’s greatest money manager,” at least according to Institutional Investor in 1981. With various global macro strategies under his belt, investors often paid attention to where Soros was placing his capital in terms of the stock market.

Here are three of the largest bets currently in place in Soros’ portfolio I think investors may want to consider.

Key Points About This Article:

• George Soros is one of the greatest investors of all time, having made some rather remarkable and large bets on macro trends throughout his career.
• Accordingly, plenty of investor interest is placed on his current holdings – here are three of his top picks in his portfolio worth watching closely.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

SPDR S&P 500 ETF (SPY)

Passive investing can be a great way to build one’s wealth. Indeed, trying to beat the market can be a fool’s errand, and some of the best investors of all time know this is true. However, it’s rare to see a billionaire investor like George Soros almost implicitly admit the market is smarter than he is, but perhaps that’s part of his genius with holding the SPDR S&P 500 ETF (NYSEARCA:SPY) as his top portfolio holding.

Consisting of the 500 largest U.S. companies, the S&P 500 is the premier benchmark most investors gauge their performance against. As the saying goes, if you can’t beat ’em, join ’em. In this case, having a significant portfolio weighting toward the overall index can ensure the Soros Fund remains at least competitive with the benchmark, while other positions can potentially amplify upside or reduce downside in upside down markets.

There are other passive index funds out there for investors to choose from, but the SPDR S&P 500 ETF is largely considered to be among the most liquid and widely-traded. For those looking to hedge positions via options, this ETF also has a very liquid options chain, which can come in handy. And that’s a tool I’m sure Soros uses from time to time.

Over the long-term, SPY remains a top option for long-term investors (be they passive or active) to manage risk and garner returns that are at least close to the benchmark over time.

AstraZeneca (AZN)

AstraZeneca (NASDAQ:AZN) is Soros’ second-largest holding, which should come as no surprise to many investors. The pharma giant is much less correlated to broader market moves, meaning this is a safe and rather defensive pick in this current environment. Soros and other institutional hedge fund managers appear to be taking a more defensive approach to portfolio construction, so I understand this pick.

But AstraZeneca is also a pharma company that’s seen strong growth in recent years. The company is aiming to expand its current portfolio of 12 blockbuster drugs to 25 by 2030. Key drugs like Lynparza, Tagrisso, and Imfinzi have fueled significant revenue growth in the past, and AstraZeneca’s global presence means this company has plenty to gain from a broadening out of demand globally for the indications these drugs are currently approved for.

As AstraZeneca looks for approvals on new indications, and is able to expand its portfolio of blockbuster drugs, expectations are high that growth can continue. Given the company’s valuation multiple of 17-times earnings, investors don’t have to pay much for this growth. Thus, this is a relative value pick I like on this basis as well.

If the company can continue to see revenue growth in the 15.5% range, as implied by analyst expectations, I think this stock could be poised for nice steady growth higher. That’s what Soros appears to be betting on right now.

Westrock (WRK)

Westrock (NYSE:WRK) is an interesting pick as a top Soros holding, as this stock is one that doesn’t get much coverage. In fact, the company’s stock price rose after Craig-Hallum recently initiated coverage with a Buy rating, highlighting the company as a premier beverage solutions provider for top clients. The analyst emphasized the importance of Westrock’s new facility in Conway, Arkansas, noted as the largest vertically integrated roast-to-ready-to-drink plant globally. This facility positions Westrock to meet rising consumer demand for cold coffee, offering significant growth potential. 

For those who want to place long-term bets on not only the strength of the North American market, but also the defensive nature of the supply chain industry continuing to heal, this is a stock that could come into favor among more institutional and retail investors. Westrock’s focus on helping clients reduce costs through automation is a growth engine that could continue to rev up in the years to come. And while the company is expected to produce a quarterly loss in its upcoming quarter, revenues are also expected to grow at an annual rate of around 20% for the foreseeable future.

So, if Westrock can get its margins in line and focus on efficiency, this is a stock that can soar. It’s one I’ve just put on my watchlist after diving into Soros’ portfolio. I want to dive deeper into how this company operates and performs in the coming quarters, after seeing how large a bet Soros is making on this particular stock.

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