Tags: Soros | hedge | funds | ETF

MarketWatch: Soros and Other Big-Time Investors Hedging Against a Market Drop

Wednesday, 20 Aug 2014 10:40 AM

By John Morgan

Billionaire George Soros is not the only marquee investor who is hedging against a stock market crash these days.

Soros' latest 13F filing with the Securities and Exchange Commission shows he hiked his position in SPDR S&P 500 exchange-traded fund (ETF) puts in the latest regulatory reporting period by more than 600 percent to a whopping $2 billion holding.

Raul Moreno, chief executive of iBillionaire, an index that tracks investment choices by big investors, told MarketWatch it represents Soros' largest such put position since 2008. But since Soros is still 80 percent long equities, he noted the stake is likely a hedge against disaster rather than a firm conviction the market is headed for a freefall.

Editor's Note:
Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify)

Another large investor's 13F filing showed a huge bearish position on homebuilders. Chase Coleman's Tiger Global Management held 23.5 million put options on the SPDR S&P Homebuilders EFT as of June 30, a stake with a market value of $770 million.

Billionaire Carl Icahn, meanwhile, boosted his stake in CVR Energy Inc. by 8 percent to a total of nearly 77.2 million shares as of the end of the second quarter, a stake with a market value of about $3.58 billion.

"We have seen an increase in energy stocks, particularly those with a high dividend yield, and we see them as some protection against a potential downfall," Moreno said.

Icahn and another major U.S. investor, Appaloosa Management's David Tepper, have been sounding cautions about high stock valuations in recent months.

Icahn warned last week of a "major asset bubble" and Tepper suggested earlier this year that it might be wise for investors to take some profits.

However, Moreno noted both Icahn and Tepper appeared to maintain their long positions in the market, at least through the second quarter.

Soros' funds kept major bullish stakes in energy firm YPF SA, SPDR S&P 500 ETF calls, Teva Pharmaceuticals and Tibco Software, among others, MarketWatch reported.

Some big hedge fund operators actually raised their long exposure by the end of the second quarter, according to Maz Jadallah, founder of research firm AlphaClone.

For instance, he told MarketWatch, Ray Dalio's Bridgewater Associates saw long exposure increase by 9 percent, and John Burbank's Passport Capital raised its long positions by 44 percent.

"That doesn't look like they're running for the hills," Jadallah said.

If there was much doubt that many hedge funds tend to have a follow-the-herd mentality, it could be dispelled by the some of AlphaClone's latest data cited by CNBC.

The largest total stock investment by hedge funds is in Icahn Enterprises, followed by Allergan, a takeover target being pursued by billionaire investor Bill Ackman's Pershing Square Capital Management, according to AlphaClone's analyses of approximately $1 trillion in assets managed by more than 250 hedge funds.

The next largest hedge fund holdings were in Vanguard FTSE Emerging Markets ETF, General Dynamics and Microsoft, AlphaClone's 13F filings analysis showed.

Editor's Note: Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify)

Related Stories:

© 2015 Moneynews. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Facebook CEO Mark Zuckerberg Spends Although Growth Is Slowing

Wednesday, 28 Jan 2015 17:53 PM

Facebook Inc. reported slowing revenue growth in the fourth quarter, as Chief Executive Officer Mark Zuckerberg delivere . . .

Stocks Fall After Federal Reserve Statement, Oil-Price Decline

Wednesday, 28 Jan 2015 16:56 PM

Stocks fell on Wednesday, driven by a sharp decline in the S P 500 energy sector, after the Federal Reserve said the dom . . .

Peter Orszag: Medicare's Power to Ensure Affordable Healthcare

Wednesday, 28 Jan 2015 14:14 PM

The Department of Health and Human Services' action to set a timetable for moving Medicare away from fee-for-service pay . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved