Is Soros betting on a market crash?

"Tyler Durden" of the blog ZeroHedge has been examining the investment track of George Soros's hedge fund and found that the billionaire "open society" manager has been squirreling away a ton of cash, betting on a crash of the stock market:

Back in February we observed, with some surprise, when Soros Fund Management, the investment vehicle of the famous Hungarian billionaire investor revealed in its Q4 13F that the firm had taken its bearish S&P 500 ETF - aka SPY - put exposure to a then record $1.3 billion notional, prompting us and many others to ask if Soros was preparing for a market crash. Fast forward to today when following the latest 13F disclosure from the same fund, we note, with double the surprise that a quarter after the same ETF put was lowered to "only" $299 million notional, Soros has once again increased his total SPY Put to a new record high of $2.2 billion, or nearly double the previous all time high, and a whopping 17% of his total AUM.

[...]

Furthermore, remember that what was disclosed yesterday is a snapshot of Soros' holdings as of 45 days ago. What he may or may not have done with his hedge since then is largely unknown, and since there are no investor letters, there is no way of knowing even on a leaked basis how the billionaire has since positioned for the market.

Then again, considering that not only Yellen, who has warned about bubble pockets in stocks, but the BIS, Icahn and numerous other fund managers, now openly warn that the entire market has entered bubble territory, perhaps this is a case where the simplest explanation is also the right one..

Soros has a history of making these bets. All of them don't pay off but enough of them do - especially his currency manipulations - so that we should probably pay attention to how he is managing his money.

It wouldn't take much to send the market into free fall. A war in the Ukraine, the fall of Iraq, a mass casualty terrorist attack - any of those could set off a bear market that could plunge our weak economy back into a deep recession.

Soros apparently thinks he's gotten a jump on the disaster.

"Tyler Durden" of the blog ZeroHedge has been examining the investment track of George Soros's hedge fund and found that the billionaire "open society" manager has been squirreling away a ton of cash, betting on a crash of the stock market:

Back in February we observed, with some surprise, when Soros Fund Management, the investment vehicle of the famous Hungarian billionaire investor revealed in its Q4 13F that the firm had taken its bearish S&P 500 ETF - aka SPY - put exposure to a then record $1.3 billion notional, prompting us and many others to ask if Soros was preparing for a market crash. Fast forward to today when following the latest 13F disclosure from the same fund, we note, with double the surprise that a quarter after the same ETF put was lowered to "only" $299 million notional, Soros has once again increased his total SPY Put to a new record high of $2.2 billion, or nearly double the previous all time high, and a whopping 17% of his total AUM.

[...]

Furthermore, remember that what was disclosed yesterday is a snapshot of Soros' holdings as of 45 days ago. What he may or may not have done with his hedge since then is largely unknown, and since there are no investor letters, there is no way of knowing even on a leaked basis how the billionaire has since positioned for the market.

Then again, considering that not only Yellen, who has warned about bubble pockets in stocks, but the BIS, Icahn and numerous other fund managers, now openly warn that the entire market has entered bubble territory, perhaps this is a case where the simplest explanation is also the right one..

Soros has a history of making these bets. All of them don't pay off but enough of them do - especially his currency manipulations - so that we should probably pay attention to how he is managing his money.

It wouldn't take much to send the market into free fall. A war in the Ukraine, the fall of Iraq, a mass casualty terrorist attack - any of those could set off a bear market that could plunge our weak economy back into a deep recession.

Soros apparently thinks he's gotten a jump on the disaster.

RECENT VIDEOS