Soros Sells 1.476M NYCB Shares, Boosts Tech with Alphabet

Soros Fund Management exits NYCB, selling 1.476 million shares, and boosts tech exposure by adding 270,000 Alphabet shares.

By Alex P. Chase

5/16, 01:36 EDT
Alphabet Inc.
New York Community Bancorp, Inc.

Key Takeaway

  • Soros Fund Management sold its entire stake in New York Community Bank (NYCB), over 1.476 million shares, amid a 64% YTD share decline.
  • The fund significantly increased its tech exposure by adding more than 270,000 shares of Alphabet Inc. (GOOGL), totaling nearly 1.5 million shares.
  • These strategic portfolio adjustments were revealed through a regulatory 13-F filing, highlighting shifts towards tech and away from declining bank stocks.

Strategic Portfolio Adjustments

Soros Fund Management, the investment vehicle founded by George Soros, has made notable changes to its investment portfolio in the first quarter, as revealed in a recent regulatory filing. The family office has completely divested its stake in New York Community Bank (NYCB), selling over 1.476 million shares of the lender. This move comes amidst a challenging period for NYCB, whose shares have declined by 64% year to date. Fitch Ratings recently downgraded New York Community Bancorp Inc.'s long-term issuer default ratings further into junk territory, although it also noted that the bank's downside risks have stabilized.

Expanding Tech Exposure

In contrast to its divestment from NYCB, Soros Fund Management has increased its stake in the tech giant Alphabet Inc. The fund added more than 270,000 shares of Alphabet Class A (GOOGL), bringing its total holding to nearly 1.5 million shares. The value of this position was nearly $225 million at the end of the first quarter. This adjustment reflects a significant increase in the fund's exposure to the technology sector, specifically in one of its leading companies.

Regulatory Disclosure Insights

The adjustments in Soros Fund Management's portfolio were disclosed through a 13-F filing, a regulatory requirement for large investors to report their long positions in stocks and options at the end of each calendar quarter. These filings, due 45 days after the quarter's end, provide a snapshot of the fund's holdings at that time. However, it's important to note that the positions may have changed significantly since the filing date, offering a delayed glimpse into the investment strategies of major financial players.

Street Views

  • Fitch Ratings (Neutral on New York Community Bancorp):

    "The bank’s downside risks have stabilized."