George Soros’ hedge fund, Soros Fund Management LLC, states in its Nov. 14th 13-f filing that, among other major moves related to gold, the fund has added a $9 million call option position on the GDX which means that management of the fund believes that gold mining equities are extremely undervalued on a short term basis and that major money to be made over the next 6-12 months, via a sharp move higher in the GDX. Words: 405
So says Tekoa Da Silva (www.bullmarketthinking.com) in edited excerpts from his original article* entitled The Soros Position Nobody is Talking About.
Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), may have edited the article below to some degree for length and clarity – see Editor’s Note at the bottom of the page for details. This paragraph must be included in any article re-posting to avoid copyright infringement.
Da Silva goes on to say, in part:
Just about everyone in the gold and money management communities, is aware that billionaire George Soros’ hedge fund, Soros Fund Management LLC, is heavily invested in gold and gold mining equities. Additionally, in the past few days, a flurry of new articles have been written, detailing the Soros Fund’s most recent 13-f filing (a document which contains a fund’s investments held during a financial quarter which, when we compare a recent 13-f with a previous 13-f, we can see the buying and selling activities of a fund during a given time frame.)
In the most recent 13-f filing on November 14th, the Soros fund:
- increased its position in gold via the GLD fund from 884,400 shares, to 1.3+ million shares,
- increased its position in the GDX gold miners ETF from 1 million shares, to over 2.3 million,
- added a 1.7 million share position in Kinross Gold,
- maintained a nearly 2.4 million share position in the GDXJ junior gold miners ETF and
- added a $9 million call option position on the GDX.
One thing we do not know, is the expiration date and strike price of the options. However, given the size of the fund, and size of the option position, it’s very unlikely that the options are short-term (i.e., less than 6 months), and due to necessary volume to fill such a position, they are likely “close to the money” to use a piece of option jargon.
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There is no doubt great numbers of retail investors have abandoned the mining equity space this year so it’s encouraging to see one of the world’s most successful billionaire investors moving cash into the gold mining equity space, especially during a time in which many a smart market commentator has pounded the table to anyone who will listen, of the value to be had in the sector.
Editor’s Note: The above post may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.
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