It is always a clever strategy to keep tabs on the portfolios of legendary fund managers, and George Soros has certainly caught the eye this time.

In the first quarter, his Soros Fund Management cashed out a stake of nearly 260,000 Google Inc. shares and reduced its shareholding in Apple Inc., according to its quarterly portfolio disclosure.

Meanwhile, the fund retained most of its stakes in Chinese companies, and nearly quadrupled its exposure to the SPDR Gold Trust (GLD), showing Soros’s positive outlook for the China market.

His increased investment in China Concept stocks may pave the way for an eventual entry into China’s A-share market. He has acquired shares in eight NASDAQ-listed Chinese companies, including tech firms, a real estate information specialist and media companies.

His fund added 120,000 shares in Focus Media Holding Ltd. (NASDAQ:FMCN), the biggest outdoor media company in China, in Q1. His 500,000 shares in China Real Estate Information Corp. (NASDAQ:CIRC) boosted book value by at least $500,000 compared with the end of last year.

However, Soros cut his stakes in search engine Baidu.com Inc. (NASDAQ:BIDU) and information portal Sohu.com Inc. (NASDAQ:SOHU).

Market experts believe that Soros, the financial crocodile, shifts his investment style from short-term hedging to long-term value investment in China, targeting domestic economic growth. Chinese media recently repeatedly reported that his hedge fund conducted research into local enterprises, in preparation for future investment.

Heavy industrial equipment maker Zoomlion Heavy Industry Science and Technology Co. Ltd. (000157.SZ, 1157.HK) said in its Q1 report that the fund looked into its development blueprints and sales on March 28.

Meanwhile, Chinese local newspapers have reported that the fund is also looking at consumer electronics retailer Suning Appliance Co. Ltd. (002024.SZ) and Zhejiang Jinggong Science & Tech. Co. Ltd. (002006.SZ), a maker of special purpose machineries and equipment.