Soros Bets $2 Billion on Stock Market Collapse
By F.J. McGuire | Saturday, 16 Aug 2014 08:41 AM
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Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion.
The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Index since late last year.
The latest 13-F filing with the Securities and Exchange Commission shows that Soros Fund Management increased its position in “puts” on the SPDR S&P 500 exchange-traded fund by a staggering amount in the second quarter from the first.
Editor’s Note: New Warning - Stocks on Verge of Major Collapse
The chairman of Soros Fund Management lifted his position to 11.3 million put options on the S&P 500 ETF (SPY), boosting the short position from 2.96 percent to 16.65 percent. The dollar value of the position soared to $2.2 billion from around $299 million. At 16.65 percent, that position is the biggest slice of the Soros firm's portfolio.
Many experts see such a put position as a wager that the price of the stock market (in this case the S&P 500) will tumble.
However, some experts warn that such tactics might be part of some long-term trading strategy.
Given that the reported positions are as of June 30, Soros may have made changes since that time.
Friday, the S&P 500 pared earlier declines in the late afternoon, ending the day little changed at 1,955.06. It earlier fell as much as 0.7 percent. The S&P 500 rose 1.2 percent during the week and ended the week 1.7 percent below its all-time high of 1,987.98, reached July 24.
Read more
By F.J. McGuire | Saturday, 16 Aug 2014 08:41 AM
Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion.
The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Index since late last year.
The latest 13-F filing with the Securities and Exchange Commission shows that Soros Fund Management increased its position in “puts” on the SPDR S&P 500 exchange-traded fund by a staggering amount in the second quarter from the first.
Editor’s Note: New Warning - Stocks on Verge of Major Collapse
The chairman of Soros Fund Management lifted his position to 11.3 million put options on the S&P 500 ETF (SPY), boosting the short position from 2.96 percent to 16.65 percent. The dollar value of the position soared to $2.2 billion from around $299 million. At 16.65 percent, that position is the biggest slice of the Soros firm's portfolio.
Many experts see such a put position as a wager that the price of the stock market (in this case the S&P 500) will tumble.
However, some experts warn that such tactics might be part of some long-term trading strategy.
Given that the reported positions are as of June 30, Soros may have made changes since that time.
Friday, the S&P 500 pared earlier declines in the late afternoon, ending the day little changed at 1,955.06. It earlier fell as much as 0.7 percent. The S&P 500 rose 1.2 percent during the week and ended the week 1.7 percent below its all-time high of 1,987.98, reached July 24.
Read more
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