Tags: Soros | S&P | stocks | bearish

CNNMoney: Soros' S&P 500 Position May Not Be as Bearish as it Appears

By    |   Thursday, 20 February 2014 02:14 PM

Much has been made over the past few days over the fact that Soros Fund Management more than doubled its holding of puts on the SPDR S&P 500 exchange-traded fund in the fourth quarter — to $1.3 billion.

Some saw the move as an indication that Soros' legendary chairman George Soros has turned bullish on stocks. "But looks can be deceiving," writes CNNMoney's Patrick Sheridan.

The Soros puts position may simply represent a standard hedge for its $11.7 billion portfolio, Ian Dogan, research director at Insider Monkey, tells Sheridan.

Editor’s Note:
These 38 Dates Are Key to Bagging $313,038

While the puts position increased by $830 million in the fourth quarter, Soros' overall long position rose by $2 billion, Dogan explains.

The stocks Soros purchased in the period include Apple, General Motors, JPMorgan Chase and Dish Network.

Sheridan points out that we also don't know what Soros has done with the holdings in the first quarter. It doesn't have to report its first-quarter activity to the government until May, according to Sheridan.

Meanwhile, many other investors remain bullish on stocks, as the Standard & Poor's 500 Index stands within 1 percent of its record high.

"The underlying strength of the U.S. consumer, of U.S. corporations is still there," James Liu, a global market strategist at J.P. Morgan Funds, tells Bloomberg.

"On the emerging markets side, the question is whether there is contagion for the U.S. market, and I think the answer that we’ve seen is no."

Editor’s Note: These 38 Dates Are Key to Bagging $313,038

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Much has been made over the past few days over the fact that Soros Fund Management more than doubled its holding of puts on the SPDR S&P 500 exchange-traded fund in the fourth quarter — to $1.3 billion.
Soros,S&P,stocks,bearish
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2014-14-20
Thursday, 20 February 2014 02:14 PM
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