Soros doubled his bet against the S&P 500, and owned 2.1 million put options on the SPDR S&P 500 ETF. That was according to the U.S. regulatory filings 13-F back in the first quarter of 2016. In the same filings with the U.S. Securities and Exchange Commission shown on Monday, the billionaire bought another 1.9 million shares during the second quarter.

 

Famed for making a cool billion US dollar by “breaking” the Bank of England in 1992, semi-retired George Soros now owns a whopping 4,004,000 shares of SPDR S&P 500 ETF Put Options. Buying these S&P 500 puts means he continues betting a bearish market, and essentially gives Soros the right, but not the obligation, to sell them in the future.

The legendary currency speculator had warned that if Britain voted to leave the EU on June 23 it would mark the end of the European Union. He believed a failure of Brexit because the British pound had stayed strong prior to the EU Referendum. His prediction, of course, couldn’t be more wrong.

 

While global markets sold off dramatically following the surprise decision by UK voters to leave the European Union, they have since rallied back. The world stock markets, led by the U.S. Dow Jones and S&P 500 have been hitting the roof ever since. Because the disclosure didn’t mention expiration date and “strike price” of Soros’ put options, his losses are unknown.

However, billionaire Soros who is worth an estimated US$24.9 billion has been making tons of money betting on gold. As a savvy investor, the latest filings showed his Soros Fund Management LLC had taken profit in the second quarter of 2016. His holdings in SPDR Gold Trust “call options” were reduced to 240,000 shares worth US$30.4 million, from 1.05 million shares in the first quarter.

 

Soros Fund also cut its shares in Barrick Gold Corp to 1,071,074 shares worth US$22.867 million, from 19.4 million shares in the first three months of 2016, the filing showed. He had already made a cool US$90 million from Barrick Gold – the world’s largest gold producer – when it was revealed he bought 19.4 million shares worth US$263.7 million in the first quarter of the year.

In the second-quarter, Barrick posted its highest net income since 2013 as producers got a boost after spot-gold prices had the best first half in four decades. Therefore, it made sense that George Soros trimmed his investment in gold considering other funds (including Soros Fund) had rushed and bought a staggering 58-million shares in Barrick valued at US$4.6 billion.

 

As impressive as filings 13-Fs show, they don’t show short positions, or bets on currencies and commodities. The filings also come out 45 days after the end of each quarter. So it’s possible that the Soros fund has conducted tons of buys and sells since then. But why on earth did Soros bet against the American economy while at the same time contributes money to Hillary Clinton?

Here’s a naughty theory. George Soros is betting heavily on Hillary Clinton as the next American president because he’s pretty sure she would screw up the country’s economy. Soros makes money not by getting emotional but through common sense.

 

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August 16th, 2016 by financetwitter

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