Billionaire George Soros reduced his firm’s investments in the US stocks by more than a third in the first quarter. Soros placed a bet against the equities and banked on gold. The value of Soros company was publicly disclosed holdings did drop by 37% to 3.5 billion at the end of March according to the government filing. Soros Fund Management also confirmed that they owned bearish options contract on 2.1 million shares of SPDR 500 ETF Trust. It is an exchange-trade fund on https://twitter.com/georgesoros, and that tracks shareholders and poor’s 500 Index, with a face value of four hundred and thirty-one million dollars as of March 31st, 2016.
George Soros firm also bought bullish option contracts on 1.05 million shares in the SPDR Gold Trust. The company tracks the price of bullion. The fund bought did also take a significant stake in the world’s biggest producer of the metal; Barrick Gold Corp. The stake that Soros company took was worth $264 million at the end of March as the filing showed. George Soros further acquired 1.7 percent of Barrick thus making it the biggest listed holding the US.
Soros has built his fortune through the knowledge market wager. He has many times before warned of risks stemming from China. George Soros previously said that China economy is fueled by debts, and it resembles that of the United States in 2007 and 2008 when the financial crisis.
Soros has predicted that the Asian crisis is unavoidable, and a hard landing is eminent. George Soros has also warned that a such a slump would make the global crisis worse and would drag down stocks.
Gold upped 16 percent in the first three months of the year 2016, and it is the biggest quarterly surge since 1986.
Read more: Billionaire Soros Cuts U.S. Stocks by 37%, Buys Gold Miner
Soros firm manages only his wealth this is after he gave all other investors their money. Soros did sell level 3 Communication Inc. stake worth $173 million as of December 31st. He also sold Dow Chemical Co. worth $161 million. The firm did also rid its stake in Endo International Plc and Delta Air Line Inc.
Soros migrated from Hungary to England in 1947. He attended London School of Economics in 1952. His career begun in a London bank and started working at an entry level. George Soros later migrated to the United States, in 1956. He held analysis and investment management positions in different firms between 1956 to 1973.
Soros later founded his hedge fund company, Soros Fund Management. George Soros is however famously known for risking 10 billion dollars to speculation.