Dallas, Texas 08/18/2014 (FINANCIALSTRENDS) – George Soros, the billionaire hedge fund investor, whose every stake holds promise to retail investor now hold predominant stake in SPDR S&P 500 ETF Trust (NYSEARCA:SPY). Therefore, analysts believe the large position held by the family fund managing Soros Fund Management, is a precursor to a ‘big drop.’ At last count, the put were to the tune of 11.29 million, by the second quarter.
Though analyst did reveal that the older SPDR S&P 500 ETF Trust (NYSEARCA:SPY) puts which Soros Fund Management held in recent years are now disposed-off the recent position it holds in this ETF, is considered to be by-far the largest.
On a technical note, a recent post, reports that the inflation-based changes are expected to peak. The benefit of QE3 has reports that SPDR S&P 500 ETF Trust (NYSEARCA:SPY) should see some changes. The current economic changes are definitely not conducive to Utilities outperform, a condition which is typically possible only when deflation is in the air.
However, analysts and investors continue to ride the hedge fund investor curve with Soros Management. On one hand, analysts decry, the ETF under discussion is one of the most popular in the hedge fund investment radar. Now, that Soros is long into these stocks, the position which will be under the scanner include the Argentine oil company such as YPF, the Teva Pharmaceutical as well as the Tibco Software. It would continue to see and impact on other populist stocks such as Herbalife, analysts noted.
As analysts comment on the inflation expectations which do not affect the benefit of hindsight for the QE3 phase, the entry into the risk management phase does hold high implications.