George Soros cuts Radware stake

The famed investor's fund may even have posted a gain on the swift exit.

George Soros sold most of his holding in Radware Ltd. (Nasdaq: RDWR; TASE: RDWR), held through Soros Fund Management LLC during the third quarter of 2008. In August, the Soros Fund notified the US Securities and Exchange Commission (SEC) that it owned 1.1 million shares in the company, amounting to a 5.6% holding.

Yehuda Zisapel owns the controlling stake in Radware, which is run by president and CEO Roy Zisapel.

Four days ago, the Soros Fund notified the SEC that it owned just 79,000 shares in Radware as of September 30. The statement is included in the fund's 13-F form, which lists all holdings. This stake was worth $657,000 at Radware's share price on that day of $8.30. The share has since fallen 26% on Nasdaq to $6.13. The share fell 0.4% on the TASE today to NIS 23.94.

There is no doubt that Soros's quick exit from Radware saved him from heavy losses, and that the Soros Fund may even have made a capital gain on its brief sojourn. Although the Soros Fund has never stated the prices at which it bought and sold the Radware shares, the share price ranged between $7.50 and $8.10 in the period before the Soros Fund became a party at interest in the company, and was traded between $7.90 and $8.10 from that point through the end of the third quarter.

The Soros Fund has not yet notified the SEC by form 13-G that it is no longer a party at interest in Radware, although it is required to do so.

The Soros Fund has holdings in other Israeli high-tech companies. Its 13-F states that it owns convertible bonds of AudioCodes Ltd. (Nasdaq: AUDC; TASE: AUDC) with a nominal value of $117.7 million, and $2 million worth of Amdocs Ltd. (NYSE: DOX) bonds.

Published by Globes [online], Israel business news - - on November 19, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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