Soros Fund Management loads up on bearish market bet

Soros Fund Management loads up on bearish market bet

20 August 2014, 11:11
Rachael Taylor
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Soros Fund Management, the large family office that manages assets for billionaire George Soros, raised its protection against a U.S. stock market drop dramatically, sparking concerns that the powerful investment firm is expecting a big fall in equities.


During the course of the second quarter, which ended June 30, Soros Fund Management's position in puts—the right to sell at a certain price at an appointed time in the future—in a popular exchange-traded fund tracking the S&P 500 rose to 11.29 million shares, which appears to be a multiyear high for the investment manager. (During the first quarter, the size of that position was just 1.6 million puts, meaning that the second quarter marked a 606 percent increase.)

"Hedge fund stocks have really gotten destroyed in the last three weeks," said one long-short stock manager Friday morning. "We're in a difficult time here."

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