How Billionaire Investors Such as George Soros Are Playing Gold



Billionaire George Soros

Billionaire hedge fund managers such as George Soros have gobbled up shares of famous mining companies.

At the start of 2016, Soros invested in gold producers such as Barrick Gold (ABX) and Newmont Mining (NEM), anticipating greater profits as precious metals prices scaled up. These companies looked cheap to many investors after their five-year slump.

According to the 13F HR filings with the US Securities and Exchange Commission shown during the second week of August, Soros Fund Management drastically reduced its shares in the SPDR Gold Trust ETF (GLD) and Barrick Gold. Its GLD shares fell to 240,000 shares in 2Q16 from 1.1 million shares in 1Q16. Also, its Barrick shares fell to 1.1 million shares compared to 19.4 million in 1Q16.

The chart above shows us the fund flows of GLD over the past year.

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Other investors

Renaissance Technologies, a $32 billion New York–based hedge fund founded by Jim Simons, sold almost all of its holdings in Goldcorp (GG) and Yamana Gold (AUY) and more than one-third of its stake in Barrick Gold during the three months ended June 30, 2016.

Jana Partners, led by activist investor Barry Rosenstein, returned to gold in 1Q16 as prices were scaling up, but in 2Q16, Jana dissolved the 50,000 shares of GLD that it had bought.

Though May saw gold stumble, it was back with a bang due to the Brexit vote in June. August once again was dim, especially for mining companies, as gold remained vulnerable to the possibility of rising interest rates.


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