George Soros has been with Palantir for years. But now the stock market legend regrets this investment and wants to sell off all shares in the controversial data analytics firm.
• George Soros concerning Palantir
• Business practices on fire
• The investment should be discontinued
The holding company Soros Fund Management (SFM) has notified the US Securities and Exchange Commission that it has a stake in Palantir. As shown on the 13F return, of which any US investor controlling more than $ 100 million, there were 18,457,516 shares with a market value of $ 175.34 million at the end of the third quarter. Dollars owned by the hedge fund. The share in the total portfolio was 4.29 percent.
Controversial business model
This investment surprised many market participants because Palantir was considered highly controversial. A US company, co-founded by billionaire Peter Thiel in 2004, specializes in data analysis and works extensively with security agencies and secret services in the western world. She has great business and customer attention, which is why her image is shrouded in mystery.
But Palantir also helps large companies process large volumes of data. But it is precisely this access to a large amount of data, the co-operation with secret services and the confidentiality that raises concerns about potential data protection violations.
Given this, it was surprising that George Soros was, of all people, a Palantir investor, after all, the past investment myth represented fairly liberal fundamental values. Peter Thiel, on the other hand, has a more conservative stance and was a supporter of Donald Trump’s 2016 election campaign, for example.
In the meantime, however, the commitment at SFM is also considered very critical and wants to end it as soon as possible. On the Open Society Foundations website, the hedge fund reported that Palantir’s share was made in 2012 by a portfolio manager who no longer works for SFM. When Palantir took the leap on the New York trading floor with a direct location in September, this post was converted into publicly traded shares.
At the time of entry, “the negative social consequences of big data were still poorly understood,” SFM said, justifying its commitment to Palantir. “Today SFM would not invest in Palantir,” the hedge fund admitted in its statement.
Soros ends Palantir’s investment
Soros investment firm stressed that it disagreed with the data analytics firm’s business practices. Therefore, all the shares have already been sold that have been allowed to be sold up to this time, and they also want to sell the remainder as soon as this is legally and contractually permitted.
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