Keep An Eye On George Soros’ New Micro-Cap Investment
George Soros' Soros Fund Management has recently bought into Arno Therapeutics Inc. (OTCMKTS:ARNID), through a passive stake of 2,039,333 shares. This newly acquired position represents around 9.99% of Arno's common stock, a large portion of shares for a new entry.
Arno Therapeutics, a biopharmaceutical company which specializes in oncology therapeutics, completed a private placement of new shares of common stock at the end of October. The transaction, which resulted in $30.7 million in gross proceeds for the company, certainly did not escape George Soros’ attention, as his investment firm decided to buy a stake in the Arno a little over a week after the announcement.
Soros Fund Management, founded in 1969, has been delivering 20% annual returns over the past four decades. The firm invests in a series of securities, like currency, commodities, as well as stocks from transportation, energy, retail, and financial sectors, among others. However, technology is currently the hedge fund's favorite segment, with a large portion of equity investments being made in this sector.
Soros currently has an equity portfolio valued at over $9.2 billion, after gaining around 1% last 13F filing period. The fund’s most important assets, in terms percentage of its holdings, are stocks like Google Inc. (NASDAQ:GOOG) and J.C. Penney Inc. (NYSE:JCP).
The billionaire is now the first hedge fund of those we track to invest in Arno Therapeutics.
The biopharmaceutical company could prove to be a savvy investment, since it has several interesting projects in its pipeline. Onapristone, for example, is already undergoing pre-clinical trials and is expected to deliver good results for breast and endometrial cancer treatment.