George Soros, the legendary investor, has returned from a long hiatus to trade again. The hedge fund expert and philanthropist made a number of large investments, apparently due to economic and market shifts in the global arena. To be exact, the company that manages his funds (to the tune of $30 billion), Soros Fund Management LLC, sold a series of stocks and invested in gold miners and gold. This was due to anticipation of weakness in a number of markets.
These moves diverge from his earlier actions, such as betting against the pound in ’92 (which earned him a neat $1 billion in profit). Recently, Soros has turned his attention to philanthropy and influencing public policy. He supports Hillary Clinton and other candidates by donating to a super PAC, according to many sources.
He always keeps a close eye on the investments made by his firm. While he took a break from directly trading himself, has been in the office more recently, according to other staff. Perhaps it is to fill the void left by a senior investor, Scott Bessent, who left recently. One of the reasons he is concerned is due to China’s economy slowing, which will have a global (perhaps gloomy) outlook. And based on Beijing’s lack of transparency, he said, it is difficult to implement sound economic policy or accurately predict China’s economy.
A Bearish George Soros Is Trading Again
Soros believes that China’s weakness will result in deflation, bringing wages and prices down. And he thinks the EU could break up due to the crisis of refugee immigration.
George Soros has seen mixed results with his investments in the bear market. For example, his firm picked up 19 million shares of the company Barrick Gold Corp. in Q1. This puts them at the top of stockholders and has netted them about $90 million since that time. Soros also purchased 1 million shares of Silver Wheaton Corp in Q1. It has increased in position by 28%. Overall, gold has gone up 19% this year so far.
But aside from those actions, Soros has also made bearish actions in derivative positions. They are buffers of sorts against the U.S. stock market. Soros could face losses in some of these choices, seeing as how the S&P 500 went up 3% since the start of the second period. The Soros fund is up overall this year (as are most macro hedge funds), according to sources close to George Soros.
George Soros hasn’t been this involved in his firm’s own trading since 2007. Back then, he was concerned about the housing market and made bearish bets over a series of about two years. That made him over $1 billion. Perhaps he sees something again that the rest of us don’t, and it could be time to act.
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