George Soros is busy with so many investing ideas, it can get dizzying. Lately Soros Fund Management has been buying significant positions in small cap U.K. based companies.
Marketfolly reports the latest conquest of Soros Fund—the legendary investor bought a 3.62 percent stake in SDL plc (LON:SDL). About 35 percent of the position is held through contract via differences, in which CFDs allow more leverage and flexibility to the position holder. SDL plc (LON:SDL) is a management and IT solutions provider that distributes its services on a global scale.
Shares of SDL plc (LON:SDL) are down over 40 percent for the year, and more importantly stock dramatically tumbled over 30 percent as it opened trading on June 18, the day when Soros acquired/changed his position. The decline took place as the company announced a major cut in its projected profits for FY2013, now down to $23-31 million from a previous estimation of $55.5 million. Soros took that time to add to his stake in SDL and may have already gained some 10 percent profit on his position.
George Soros Bought Another Small Cap
George Soros also bought a position in a London based micro-cap, 1Spatial PLC (LON:SPA), which was acquired on June 10. Soros Fund owns 7.78 percent of 1Spatial PLC (LON:SPA), a holding company which has operations in software consultancy and solutions. Here Soros has not been as lucky, 1Spatial is down 15 percent since June 10.
Henderson Alternative Investment has a 1.42 percent short position in 1Spatial PLC (LON:SPA) whereas BlackRock used to have a short in SDL plc (LON:SDL) which was covered in April.