Tuesday, November 16, 2010

"Soros Bets on Health Care, Dumps Gold" and Paulson Cuts Bets on BofA and Citigroup (GLD; BAC; C)

Always remember that hedgies are only required to report their U.S. listed securities in the 13F.
Foreign traded securities, options, warrants, swaps etc. won't show up here unless they want them to.

What that means in practice is Mr. Soros could show a declining interest in, say, a malleable, ductile metal by way of equity sales while at the same time entering into a swaps agreement with say, Goldman Sachs, to maintain or even increase the fund's exposure.

"You have my word as a hedge fund manager...."
[George Soros]
From The Street:
Soros Fund Management, the fund management arm of billionaire investor George Soros, bulked up on health care and biotechnology in the third quarter, according to the hedge fund manager's quarterly filing of portfolio holdings, released after the market close on Monday. At the same time, the famed hedge fund manager notably shifted away from gold, one of his favorite investments.

The biggest new addition to the Soros portfolio, on a percentage-of-portfolio basis, was biotechnology play Dendreon(DNDN_)...

...One of the biggest position decreases for the Soros funds in the third quarter was gold. Soros decreased his stake in the SPDR Gold Trust(GLD_), the third biggest decrease for Soros' funds, following CVS Caremark(CVS_) and Consol Energy(CNX_)....MORE
And from DealBook:
For much of the post-crisis recovery, John A. Paulson has bet big on the nation’s banks, wagering that with the worst of the financial meltdown behind us, the sector was full of promise.
It appears that Mr. Paulson is no longer as fervent a believer in that thesis.

The hedge fund manager’s firm, Paulson & Company, disclosed in a regulatory filing on Monday that it had cut its holdings in several major firms, notably Bank of America and Citigroup.

As of the end of the third quarter, Mr. Paulson had reduced his stake in Bank of America by about 30 million shares, to 137.8 million shares. And he cut his holdings in Citigroup by about 82.7 million shares, to 424 million shares....MORE