George Soros is Shorting The Trump Rally

George Soros is Shorting The Trump Rally

George Soros is Shorting The Trump Rally


Recent SEC filings reveal that George Soros has placed big bets against the stock market.

The position is costly, the S&P 500 index is up 9.4% since the November election of President Donald Trump, whom Mr. Soros strongly opposes.

Mr. Soros’ bets Vs stocks came in the form of Puts, or options to sell, on 2 exchange-traded funds that track broad market indexes.

He took out a Put position of 2.5-M on the iShares Russell 2000, a fund that tracks the small-cap index, according to an S&P Global Market Intelligence analysis of Mr. Soros filings with the Securities and Exchange Commission.

That ETF is up 21% since bottoming just before the November 8th election.

That position had a notional value, if the puts were exercised of $330.6%, representing a 59% increase from the $208.4-M value in Q-3.

He also held 493,000 Puts on the SPDR S&P 500 ETF, which tracks the large-cap index. The notional value of those puts was $110.2-M, a 27% decline from the previous quarter, according to S&P.

Mr. Soros also had a short position on industrial stocks, with $77.8-M worth of Puts on the SPDR Industrial Select Sector fund. That ETF has gained 12.3% since the beginning of Q-4.

Mr. Soros countered his short exposure with bets on banks. He held $72.7-M worth of Calls, or options to buy, on the SPDR Financial Select Sector ETF, which holds large-cap banks as well as other financial giants including B-class shares of Berkshire Hathaway (NYSE:BKS.B). The fund is up nearly 27% since the start of Q-4.

Soros’ New York-based firm disclosed a $14.9-M position in Goldman Sachs (NYSE:GS) and made a new bet on Bank of America (NYSE:BAC) worth $3.9-M. One of its biggest buys during the last 3 months of Y 2016 was a call option on the S&P Select Sector SPDR Fund – Financial Sector worth $72.6-M.

The data reveals that number of asset managers bought into financial stocks during Q-4 of Y 2016 after Donald Trump’s Presidential victory suggested that tax cuts and a reduction of regulatory burdens plus higher interest rates could benefit the financial sector.

Mr. Soros recently brought on a former UBS executive Dawn Fitzpatrick to be the firm’s CIO (chief investment officer), putting a woman in charge of his portfolio for the 1st time.

The Short positions, bets on a stock declining, were “between 0.2 and 0.5%,” of shares outstanding in the companies shorted the data shows.

George Soros’ political bent is to the far left and he has been linked to the anti-Trump movement in America.

Symbol Last Trade Date Change Open High Low Volume
NYSEArca:SPY 235.09 Feb-17-2017 0.37 233.95 235.09 233.93 77,172,100
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.38) Bullish (0.38) Bullish (0.48) Bullish (0.29)

Have a terrific President’s Day weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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