This is the first in a regular column starting today: the Stockpickr portfolio of the day. Each day we'll feature a new hedge fund, mutual fund, trading system or special portfolio that we are covering on Stockpickr.What's
When Soros was betting on the pound's decline he was betting that a tipping point had been reached that had made the idea of the pound's decline irresistible to the general public, to speculators, to policymakers, etc., and that nobody could do anything to prevent it, no matter how irrational it might be. It's when he sniffs out this type of weakness or strength that Soros will make his biggest bets. How he "sniffs out weakness" goes one step beyond philosophy and into his own talent. As his own son, Jonathan Soros, put it, "When my father's back hurt he knew he was in a bad trade." Which is why it's all the more interesting that Soros has made a significant shift in some of his holdings in the past quarter, according to Stockpickr.com. First off, two new positions that appear to be macro bets include an investment in Energy Select Sector SPDR ( XLE) and OIH (Click here to see other Stockpickr portfolios owning OIH). XLE is the Energy sector ETF and OIH is the ETF for the oil services industry. Other portfolios with similar holdings include Clarium Capital and T.Boone Pickens, two investors who believe in the "peak oil theory," which is the idea that we've already gone beyond the tipping point of peak oil production and from here on out our oil supplies will be depleted.
Soros may not believe in this depletion but he may believe that enough people will believe this theory that the price of oil will be driven up. Soros is also a political opponent of the Bush admistration (he once stated that driving Bush out of office was the main focus of his life) and he may believe that the Bush administration's policies are also pushing these industries higher. In his latest filing he also seems to like the mass retail sector with new positions in JC Penney ( JCP), Kohl's ( KSS) and Target ( TGT). Penney, in particular, seems undervalued. To see other portfolios that own or recommend Penney, click here. One interesting portfolio is from the Sept. 28 airing of Mad Money where Jim Cramer commented on his ten favorite retail stocks, which include several that overlap with Soros' portfolio. Soros could also be thinking that we have the potential for a new technology boom in the stock market because he has started increasing his positions in several blue-chip tech companies including Cisco ( CSCO), Qualcomm ( QCOM), and Corning ( GLW) and several others that are found at this portfolio page. Soros looks at demographic trends, and with bandwidth needs and capabilities increasing every day he seems to be making a bet on the companies most likely to benefit. For more details on Soros' holdings, check out his page at Stockpickr. Also, to get regular updates on his holdings and when his Stockpickr page is updated, rate his portfolio with four stars and you will get email notifications of whenever the portfolio is updated. It's also interesting to see which funds have recently added the same positions that are in Soros' portfolio to see which stocks might be under accumulation. To comment or ask questions on Soros' portfolio, feel free to enter comments in the bottom right section of Soros' page on Stockpickr.