George Soros Betting Against President Trump and America
$DIA, $SPY, $QQQ, $VXX
Billionaire left-wing investor George Soros has increased what so far has been a losing bet against the US stock market and by extension President Trump and the American economy, he will get hammered.
Notably, the CBOE Volatility Index (VIX) 12.18, -2.48, -16.9% better captured the day’s risk-on tone, diving 2 points, it continues to trade at 24 year lows as The Trump Rally is still in place consolidating its massive gains since 8 November.
Mr. Soros added Bearish options plays to his portfolio during Q-1, that according to recent Soros filings with the Securities and Exchange Commission (SEC).
“His 2 primary plays — against large caps via the S&P 500 and small caps via the Russell 2000 — have a notional, or potential, value of $764.3-M, according to an analysis from S&P Global Market Intelligence,” during the 1st 3 months of the year.
“They continue a trend he began in Y 2016 of betting against the market, moves that haven’t worked out well considering the latest leg in the Bull market. The S&P 500 is up 6.4% this year while the Russell 2000 is up 0.8%.”
The Quarterly disclosures of manager stock holdings, in what are known as 13F filings with the SEC, are always intriguing for investors trying to divine a pattern in what savvy traders are selling and buying.
But relying on the filings to develop an investment strategy comes with some peril because the disclosures are backward looking and come out 45 days after the end of each Quarter.
Still, the filings offer a glimpse into what hedge fund managers saw as opportunities to make money on the long side. The filings do not disclose short positions, bets that a stock will fall in price. And there is little disclosure on bonds and other securities that do not trade on exchanges.
Upon request, the SEC also permits managers to omit sensitive stock positions from 13F filings. As a result, the public filings do not always present a complete picture of a manager’s stock holdings.
As of the end of the quarter, Soros held 3.3-M/shares of the iShares Russell 2000 exchange-traded fund Puts, an increase of 36% from the prior Quarter and carrying a notional value of $459.6-M.
He increased his holdings of SPDR S&P 500 Puts by 162% from Q-4 of Y 2016 to 1.3-M/shares, carrying a notional value of $304.7-M.
A Put option is an option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time. It is the opposite of a Call option, which gives the holder the right to buy shares.
Friday, the US major stock market indexes finished at: DJIA +141.82 at 20804.84, NAS Comp +28.57 at 6083.69, S&P 500 +16.01 at 2381.73 ending the week in positive territory.
Notably, the CBOE Volatility Index (VIX) 12.18, -2.48, -16.9%) better captured the day’s risk-on tone, diving 2 points, it continues to trade at 24 year lows as The Trump Rally is still in place consolidating its massive gains since 8 November.
Volume: Trade was heavy on the NYSE with 1.26-B/shares exchanged
- NAS Comp +13.0% YTD
- S&P 500 +6.4% YTD
- DJIA +5.3% YTD
- Russell 2000 +0.8% YTD
Have a terrific weekend.