"Soros Put" Hits Record As Billionaire's Downside Hedge Rises By 154% in Q4 To $1.3 Billion

Tyler Durden's picture

A curious finding emerged in the latest 13F by Soros Fund Management, the family office investment vehicle managing the personal wealth of George Soros.

Actually, two curious findings: the first was that the disclosed Assets Under Management as of December 31, 2013 rose to a record $11.8 billion (this excludes netting and margin, and whatever one-time positions Soros may have gotten an SEC exemption to not disclose: for a recent instance of this, see Greenlight Capital's Micron fiasco, and the subsequent lawsuit of Seeking Alpha which led to the breach of David Einhorn's holdings confidentiality).

The second one is that the "Soros put", a legacy hedge position that the 83-year old has been rolling over every quarter since 2010, just rose to a record $1.3 billion or the notional equivalent of some 7.09 million SPY-equivalent shares. Since this was an increase of 154% Q/Q this has some people concerned that the author of 'reflexivity' and the founder of "open societies" may be anticipating some major market downside.

Then again, as the chart below shows, as a percentage of total AUM, the put position rose to 11.1% of his notional holdings. By way of reference, as of June 30 2013, his SPY put may have had a smaller notional value, but it represented both more shares (7.8 million), and was far greater as a % of AUM, at 13.5%.

Finally, remember that what was disclosed on Friday is a snapshot of Soros' holdings as of 45 days ago. What he may or may not have done with his hedge since then is largely unknown, and since there are no investor letters, there is no way of knowing even on a leaked basis how the billionaire has since positioned for the market.

That said, while the SPY puts are most likely simply a hedge to his overall bullish exposure, perhaps more notable was the $25 million call position that Soros put on the gold miners ETF which has been beaten into oblivion over the past year, in the fourth quarter. Does Soros think that it is finally the miners' turn to shine?

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AdvancingTime's picture

Another possibility is a washing machine market where the clowns in charge spin, agitate, rinse, and wash us out of our money.

AdvancingTime's picture

It is very possible that Soros is less than impressed with this economy and what he sees. The economic recovery that the media and talking heads have been bantering around does not exist and is just a myth. A manipulated stock market distorted by recent economic policy hides and mask the real truth. The stock market has become ground zero in the war to convince us all is well. 

The American people and Main Street will tell you they are far from convinced that it is smooth sailing ahead. The massive weakness in the economy has been confirmed recently  and growth has started to wane. Fact is if QE or the massive government deficit spending that props up our economy is removed it will fold like a cheap umbrella. More on this subject and the risk before us in the post below,


bunnyswanson's picture

This is a planned event.  This is financial terrorism which has been taking place since 9-11 -  -  -  Remember:  The manifesto of "Osama bin Laden"  (air quotes and a wink accompany this man's name) detailed his plan to "bankrupt America" and damned if he (air quotes) didn't accomplish his mission, even in light of many trillions of dollars spent on deterring this "mad man's agenda."


Soros is a terrorist.  A financial terrorist who is cashing in on the misery and deaths of tens of millions of people. 


I had just talked to a RE agent.  Thought to myself, sell the fucking house, grab your equity amounting to about 3 grand and run for your life back to Canada.  She was genuinely shocked to hear my reason for wanting to sell...said, "where did you hear this?" 


In a just world, the MSM buildings in every city would be burned to the ground and the maestroes of this financial collapse and overthrow of the US govt (state capture) would be thrown into the fire as added fuel.

bcking's picture

Kim Jong Un thinks George Soros is a dick.

Cornholiovanderbilt's picture

I've seen people roll losing hedges or bets month after month year after year. Main similarities I found they all shared was they increased in loserness.

Cornholiovanderbilt's picture

Imagine what would happen if that curmudgeon sold his 'billions' in puts?

BeetleBailey's picture


resurger's picture

Let me know when the DOW is 36K and the S&P is 4000!

USofAzzDownWeGo's picture

Why doesn't someone have the balls to cut this guy's head off??? Maybe because no one has a clue of this info??? They still call hitler the devil when in fact, after seeing the real truth and facts.............. i'll let you finish

thorgodofthunder's picture

You don't realize Hitler was an evil monster who murdered millions of innocent people in The Second World War? Seriously?

I pity you.

satoshi411's picture

Why does AIPAC/ZH hate Soros?


First let's look at Soro's and what is said about him from right-wing LIKUD/AIPAC fuck-twits in Israel and AIPAC-USA.

"Soros, a philosopher, a crusader for liberalism and democracy, the leader of the idea of an 'open society' does not consider Israel to be a democracy. So he does not like Israel. He stays away from Israel. He has no heart. He has no love for 5 million Jews who live in Israel, defending their survival, heroes who combat terrorists, beasts and Arab dictators, as well." - AIPAC


So how can the right-wing ISRAEL, hate SOROS so much? AIPAC controls the FED, yet morons on ZH say SOROS run's the FED, but as you see AIPAC hates SOROS, ... SOROS has nothing to do with the FED.

Soros fights for freedom and little people, and AIPAC fights for NAZI Criminality.

headless blogger's picture

They're just different branches of the same tree.

satoshi411's picture

What happens when your Jewish and you refuse to give money to AIPAC?

What CRIME did SOROS a Jew do to drive Glen Beck crazy, SOROS calls for the Palestinians and American people to be freed from their over-lords.

Here's what happens to your name ... You will be destroyed and hated by ZH.

George Soros, a non-Jewish Jew, is quiet. He does not want to visit Israel. Recently, Michael T. Kaufman published a great pioneer biography of George Soros, Soros, the Life and Times of a Messianic Billionaire (Alfred A. Knops publishers, New York, 2002). He explained that "Soros had developed a contempt for tribal sectarianism of all kinds and found much of the zeal of pro-Israel Zionists to be unappealingly chauvinistic. Why does he think that the Jews do not deserve a state of their own, the right for self-determination? That is his conclusions of Zionism and the Holocaust. But he recognizes, for example, the right of Lithuanians to have a free state. It's no surprise to find that he supports the right of Palestinians to have a state. Is he aware of the Arab's Final Solution of Israel? Is he not aware of the Arab's Nazi propaganda? 'Blood Libels' in their press?

Furthermore, Soros refuses to donate even to Jewish organizations.

headless blogger's picture

You're looking at this too simplistically. The logic is a little tougher than if A+B=C then B+A=C.

There's more than one Elite power group vying for the top-ape position in the world. The Jews got their group and so does the anglo-white boys, plus there's the vatican (wanning power for sure), nou·veau drug lords, White dragon, and Hollywood.

A lot of Jews no longer are supporting Israel; they feel it no longer serves it's purpose and has become an albatross around their necks. They also want to get rid of the FED, even though they own it and created it...because they want a more international version of it when they crash the dollar.

Just because Soros no longer likes Israel, or supports AIPAC doesn't mean he is a good guy. He just realizes, like others in the inner circle, that they don't need these organizations anymore (such as AIPAC, Israel, the U.S. FED) because they are getting ready to crash the system and bring in their next system.

Obviously we are in the midst of massive change that is going to be forced on us by a few old men. Nobody stands up to these people, so they go forward. They've been preparing for all of this the last few years right in front of everyone....AND sending the tab to the people.


satoshi411's picture

Why is ZH so Jealous of Soros?

George Soros was on his own by age fourteen, passing as a non-Jew to survive World War II. In London, at seventeen, penniless but no longer forced to live in disguise, he dreamed of personal glory and of working to make the world less harsh.

Ambition and opportunity drove him to Wall Street, where he arrived in 1956 with five-thousand dollars. He became a maverick trader, inventing novel approaches, and soon he was known as "the greatest money manager in the world."

His Quantum Fund set the standard for hedge funds, and the details of how he amassed his wealth, on his own and so quickly, are fascinating.

Soros went on to hire Jim Rogers who he made Rich.


Funny We're told to HATE SOROS but LOVE Roger's, but never why?

We're TOLD to love BITCOIN, but hate the FED but never why?

Ask 'why' and you shall never know immortality on ZH.

Apostate2's picture

Sorry to highjack the thread but another Banker death at JP Morgan in Hong Kong


A man early on Tuesday jumped to his death from the top of Chater House in Central, where Wall Street bank JP Morgan has its Asia headquarters, witnesses told the South China Morning Post.

The man, said to be in his early 30s, went to the roof of Chater House, a landmark 30-floor building in the heart of Hong Kong’s central business district – also near the city’s stock exchange – and jumped.

The incident happened between 2pm to 3pm, a witness said.

Several policemen were seen on the roof but apparently failed to convince the man not to jump, one of the witnesses said.

According to several JP Morgan employees, the man was a forex trader with the company.

However, a JP Morgan spokeswoman said the bank was aware of the incident but it could not confirm at this stage whether the deceased was an employee.

satoshi411's picture

Not a good time to be working for the AIPAC fronts in ASIA.

A lot of CHINESE MOMMA's are pissed about losing their money.

A lot of these JPM and GS brokers sold their familys and relatives this shit, and then they lost their money.

In Asia, when you fuck the family, ... you save face by killing yourself, ... but the money will still be got by going after their family.


JPM & Goldman_Sacks biz model works in the HAIR-LIP world, but fails miserably in ASIA.

Just wait until the TRIAD starts making moves on the BIG guys, ... me thinks they'll have to go run and hide in TEL-AVIV with IDF guys watching their backs.

lakecity55's picture

Just like Joe Kennedy, an inside guy who had the info to short/dump the Market and make another fortune.

ak_khanna's picture

The stock, bond, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves. They effectively use the media to lure the other players in the market to a position where they would incur maximum loss.

The markets continue to rise till all short positions in the market are covered and the majority of traders move to the long side. Once this is done the market falls till all long positions are closed and short positions undertaken. Then rinse and repeat. The price mechanism has little to do with the actual demand, supply, fundamentals or state of the economy.


Unstable Condition's picture

It's Schwartz, his name is SCHWARTZ...

GFORCE's picture

He's rolled it since 2010 so is really just locking in profits.

Iambic PentaMaster's picture

Although I can't stand the man, economically, he's usually right.


And he nailed this one as well.

headless blogger's picture

That's because he's got the inside scoop. He's not a genius, he's just part of the inner circle..