Soros 3/4 in Cash
Though he is not one of my favorite people in the industry it isn’t really possible to doubt the investing acumen of George Soros. Over the years many have made a good bit of money in markets by simply mimicking his strategies. The most recent, however, is hardly worthwhile replicating for most investors.
Apparently, George’s flagship Quantum Fund is currently has 75% of its assets in cash. Another sign that the even the most heavyweight financial players are unsure of the situation and that August 2011 is beginning to look more and more like August 2008.
Hoarding cash is usually a signal of uncertainty or extremely bearish beliefs. In today's uncertain environment, however, it can be considered a growth strategy and hedging instrument. Presumably Quantum’s cash is spread out over a basket of currencies ready to hop from one to the next if some sort of market shattering event occurs.
Soros has recently viewed his bearish perspective on Europe and is one of an increasing number of insiders claiming that Greece must be sent packing from the monetary union. As we full well know, cataclysmic events can often act like catalysts for markets. Perhaps the great cash hoard is akin to an army stockpiling weapons in expectation of a great battle. Soros has been known to play dead before and I wouldn’t put this seemingly risk averse move beyond being an aggressive strategy in passive clothing.
Where would you guys put your eggs today if you had Quantum Fund money at hand?
he must of read me on wso and copied!
this makes me feel better about investing $2000 in a stereo system for my $3000 car.
Unless he's preparing for his next title, The Man Who Broke the European Central Bank...or the US Treasury. Knowing him, I wouldn't be surprised.
Dude, have you ever worked in markets?
He isn't in cash because August 2011 "looks like" August 2008, it's a completely different dynamic. Want to make a bet on his cash position in August 2008 being the same as it is now?
Being in cash is never a "growth strategy" for an absolute return fund (which Soros putatively is).
Being in cash is also not really a "hedge" for anything
If Quantum's cash is spread out over a basket of currencies "ready to hop from one to the next", guess what - he's not "in cash", he has a massive FX position on
You don't have to be much of an insider to know Greece has to be sent packing from the EU
Being in cash is never an "aggressive strategy in passive clothing" -- there is some game theory in showing positions theoretically but most macro markets will shrug off any Soros positioning.
I appreciate that you probably have some sort of quota to fill and it's hard to always come up with original content, but please at least try to understand what you're talking about.
He's betting on deflation after this inflation bubble bursts
"Being in cash is also not really a "hedge" for anything"
exactly ColumbiaKid123, deflation.
Given that is unlikely - probably playing currency - isn't that his game??
The things some people say on wso are unbelievable
When you mostly trade FX don't you always buy and sell currency or cash ?
looks like Soros stole my strategy. I've had the majority of my assets in CHF,AUD and the like. Great USD returns.
you do know people like berkowitz and klarman hold copious amounts of cash? look at their average returns over a period of 10 years..
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I'd put 3/4 of my cash into value sized mayonnaise from Costco.
What and idiot
Just heard this on CNBC. The guy is retiring to manage money for himself and his family. And this money position is used to return money to the investors.
Billionaire George Soros is exiting the hedge fund business, and will cease managing money for outside investors, returning less than $1 billion in those funds by the end of the year.
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