Investors around the globe are taking notice of the bearish sentiments shown by George Soros. For professional investors, Mr. Soros is known for directing deals of his multi-billion family investment fund. However, others in the investment industry clearly recognize the name when George Soros stole investment limelight by betting against the British Pound, in 1992, which helped the family gain more than $1 billion in profits.
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Soros Fund Management LLC is a family owned fund worth more than $30 billion. It is overseen by professional investors with the main objective of making profits for the Sores Family. However, the fund is also known for investing in distressed assets and selling assets in bearish economy. Whenever the bearish economy is imminent, George Soros is known to jump in and actively engage in the investment decisions of the fund. It is also noticeable that George Soros does not actively manage his funds. Instead, he occasionally intervenes. However, when he does intervene, investors take notice of his moves.
Recently, the investment tycoon has gone bullish on Gold and stocks related to Gold mining. Sources close to the Soros family revealed that Soros has himself directed the management of his fund by making bearish calls on certain assets that he believe will be worth selling in the near-future. Similarly, the tycoon has bought interest in Gold, which is a result of his pessimism on the state of global economy. Analysts have confirmed that Soros believes that the recovery of several major markets is going to stop as destabilizing factors take over. He specifically mentions slow growth of capital markets in China and problems in the European Union. Actually, Soros believes that there is a big rift among the EU nations on major capital and humanitarian issues, which will lead to the demise of EU. Under these circumstances, investment in Gold is the most prudent strategy. Besides, he also believes that challenges in selecting stable political leadership in China will lead to immense financial distress in Chinese markets. According to Soros, China has implemented important legal reforms but its inability to craft a stable political system will cause major unrest in the market. The economic slowdown of the Chinese economy will have a ripple effect on the U.S. and other economies, which will likely increase inflation rates across the globe.
Similarly, the Fund has bought a million share of the Silver Wheaton Corporation, which has also resulted in hefty gains of 28% compared to the first quarter of 2016.
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