Saturday, November 15, 2014

Soros Short S&P 500 & Emerging Markets (Puts)

As previously noted on this site (Soros $2.2 Billion Bet On SPY Puts), Soros Fund Management LLC holds a large position in SPY (SPDR S&P 500 ETF Trust) puts. The position was reduced over Q3 (ending 30/09/2014), however the notional value of the position remained substantial, both in dollar terms and as a percentage of the fund.

Click Chart To Enlarge

Following the large decline and then bounce to all time nominal highs in the S&P 500 since the reporting period ended, I would be surprised if the position hasn't been further reduced in Q4, but we won't know for another 3 months.


Another interesting change includes a large short position on emerging markets (EEM put), with a notional value of $935M. It was the second largest position in the fund (by notional value, view all reported positions on Whale Wisdom) and over 2.5x larger than in Q4 2011 when Business Insider noted EEM puts were the largest position held. The iShares MSCI Emerging Markets ETF saw a large price decline during Q3.


During Q2 the Soros Fund increased positions in Gold miner ETFs (such as GDX & GDXJ), which some commentators saw as a bullish omen for this sector, however Q3 shows a reversal with the positions reduced and in the case of GDX calls the position was exited completely.

Of course as I've said before these positions don't tell us what strategy any single position might be a part of and a lot can change in six weeks (positions will have changed again since the reporting period ended).


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