Soros is trading again
After a long hiatus, George Soros has returned to trading, lured by opportunities to profit from what he sees as coming economic troubles.
Worried about the outlook for the global economy and concerned that large market shifts may be at hand, the billionaire hedge-fund founder and philanthropist recently directed a series of big, bearish investments, according to people close to the matter.
Soros Fund Management, which manages $US30 billion for Mr Soros and his family, sold stocks and bought gold and shares of gold miners, anticipating weakness in various markets. Investors view gold as a haven during times of turmoil.
The moves are a significant shift for Mr Soros, who earned fame with a bet against the British pound in 1992, a trade that led to $US1 billon of profits. In recent years, the 85-year-old billionaire has focused on public policy and philanthropy. He is also a large contributor to the super PAC backing presumptive Democratic nominee Hillary Clinton and has donated to other groups supporting Democrats.
Mr Soros has always closely monitored his firm’s investments. In the past, some senior executives bristled at how he sometimes inserted himself into the firm’s operations, usually after the fund suffered losses, according to people familiar with the matter. In recent years, he hasn’t done as much investing of his own. Recently, though, Mr Soros has been spending more time in the office directing trades. He has also been in more frequent contact with the executives, the people said.
In some ways, Mr Soros is stepping into a void at his firm. Last year, Scott Bessent, who served as Soros’s top investor and has a background in macro investing, or anticipating macroeconomic moves around the globe, left the firm to start his own hedge fund. Soros has invested $US2 billion with Mr Bessent’s firm, Key Square Group.
Later in 2015, Mr Soros tapped Ted Burdick as his chief investment officer. Mr Burdick has a background in distressed debt, arbitrage and other types of trading, rather than macro investing, Mr Soros’s lifelong specialty. That is why Mr Soros felt comfortable stepping back in, the people said.
Mr Soros’s recent hands-on approach reflects a gloomier outlook than many. His worldview darkened over the past six months as economic and political issues in China, Europe and elsewhere have become more intractable. While the US stock market has inched back toward records after troubles early this year and Chinese markets have stabilised, Mr Soros said he remains sceptical of the Chinese economy, which is slowing.
The fallout from any unwinding of Chinese investments likely will have global implications, Mr Soros said.
“China continues to suffer from capital flight and has been depleting its foreign currency reserves while other Asian countries have been accumulating foreign currency,” Mr Soros said in an email. “China is facing internal conflict within its political leadership, and over the coming year this will complicate its ability to deal with financial issues.”
Soros Fund Management, which oversees $30 billion for Soros and his family, made serious investments in gold, worried about the outlook for the global economy, the article said.
The precious metal is known to be a safe haven at a time when risks for investors are escalating. On Thursday, gold was trading at $1,267 per troy ounce.
According to the media, Soros is worried about capital flight from China.
“China continues to suffer from capital flight and has been depleting its foreign currency reserves while other Asian countries have been accumulating foreign currency. China is facing internal conflict within its political leadership, and over the coming year this will complicate its ability to deal with financial issues,” said the billionaire.
Soros is also concerned about the migration crisis, the Greek debt issue and the UK’s possible exit causing the EU to collapse.
“If Britain leaves, it could unleash a general exodus, and the disintegration of the European Union will become practically unavoidable,” he said.
“Soros has returned to trading, lured by opportunities to profit from what he sees as coming economic troubles.”
as you do when you are a vampire..
“Soros is also concerned about the migration crisis, the Greek debt issue and the UK’s possible exit causing the EU to collapse.”
collapse eh?..like the sky wall fall in?
“Later in 2015, Mr Soros tapped Ted Burdick as his chief investment officer. Mr Burdick has a background in distressed debt”