Soros increased gold positions in third quarter

[Filthy Keynes]

Soros increased gold positions in third quarter
http://www.marketwatch.com/story/soros-increased-gold-positions-in-third-quarter-2010-11-15?dist=afterbell

SAN FRANCISCO (MarketWatch) -- Soros Fund Management LLC, headed by George Soros, increased gold positions during the third quarter, according to a regulatory filing late Monday. Soros held 4,697,008 shares of the SPDR Gold Trust (GLD 132.93, +0.51, +0.39%) and 705,000 call options on the gold ETF at the end of September, the filing showed. Soros also owned 5,000,000 shares of the iShares Gold Trust (IAU 13.31, +0.06, +0.45%) at the end of the third quarter, according to the filing. Three months earlier, Soros held 5,244,697 shares of the SPDR Gold Trust, a portion of which was a shared position. The firm held no shares of the iShares Gold Trust at the end of June, according to the filing. Such regulatory filings don't include all positions held by investment firms. Many derivatives, direct commodity holdings and short positions aren't included.

[Shami-Amourae]

Deserves a repost:

[Mouse]

Soros probably has OTC derivatives shorting 95% of that long position. If he has exposure, you can bet it's hedged to the extent of the var he wants for that trading shop. I could be long a bazillion galleons and buy a put position to hedge the whole thing and still lock in a profit, then once there is a MTM on the portfolio, I can start fiddling with little arbitrages out there at super high leverage and keep that book all nice and tidy, so that it can't bust the MTM from the parent book. Soros doesn't give two shits about gold other than to make profit.