"Mystery" Buyer Revealed: Swiss National Bank's US Stock Holdings Rose 50% In First Half, To Record $62BN

Tyler Durden's picture

In a month, quarter and year, in which many have scratched their heads trying to answer just who is buying stocks, as both retail and smart money investors have been aggressively selling...

... yesterday we got the answer.

In the second quarter, the Swiss National Bank added $7.3 billion to its US equity portfolio, and according to its just filed 13-F, is now long a record $61.8 billion in US stocks, up from $54.5 billion a month ago. In fact, rising from $41.3 billion in total US stock holdings as of December 2015, this means that the Swiss central bank increased its total US holdings by a record 50% in the first half of 2016.

That's just a small fraction of the central bank's total assets, which amounted to CHF690 billion of which CHF635 was in the form of foreign currency investments, which include bonds and stocks.

Of this CHF635 billion, the activist central bank had invested 20% in global equities, with about 60% of that being allocated to US stocks.

 

Going back to the SNB's US equity focus, here is a breakdown of the top 15 holdings, most of which posted substantial increases in the second quarter.

 

And, of course, the top holding which as regular readers know, is Apple. In fact, with its latest holdings of 15.6 million in AAPL shares, the central bank is a bigger holder than Calpers, Janus, Invesco, Oppenheimer, Franklin Resources, Morgan Stanley and hundreds more.

Shortly, we will show the just as unprecedented buying of US stocks by another state actor, Japan's $1.3 trillion General Pension Investment Fund, which also acquired billions of stocks in the past few months, but even absent that we now have the answer to the recurring question of who has been buying stocks as others were selling: central banks.

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VWAndy's picture

 Fiat magic baby.

Looney's picture

 

Forget the E-Trade Baby commercial!

Here’s a new one:

Day Trading is so easy – even Central Banks are doing it!

Looney  ;-)

mtl4's picture

WHAT! Central banks are buying stocks now?!

Jtrillian's picture

What?  Nooooo. 

It's international diversification of risk allocation management.  They don't just buy stocks.  That would be ignorant.

The real question is, who is really behind the Swiss National Bank and why did they decide to send that massive shipment of gold over to the US?  There is more going on here than it seems.

nibiru's picture

In Basel, they have a very nice building with 'the Bank for International Settlements' on it. It is just a coincidence that all central banks take turns in their QE and now in direct asset purchases.

 

BOJ, ECB, SNB, FED the basket keeps growing - and with Draghi's debt purchases they make sure that wealth transfer goes to the right hands! 

ANestIOS's picture

Does the FED (or the rest of them for that matter apart from the SNB) make their equity holdings information publicly available? (I think not)

turnoffthewater's picture

FED: But I was buying VIX futures to maintain the illusion of wealth
BIS: Watch and let daddy show you how it's done.

Cognitive Dissonance's picture

Considering how much the world's central banks are buying, you'd think they could print money out of thin air.

Boris Badenov's picture

They probably are, just not in the currencies we think. With a portfolio exactly weighted to the S&P500, they can SHORT newly created shares of SPY and be considered covered. Or deliver into a market maker. Or something like that, but my big point is- Look how their portfolio matches the individual stock weights of S&P500.

Lady Jessica's picture

"Look how their portfolio matches the individual stock weights of S&P500."

So it's exactly structured to maintain S&P500 levitation?

Blankone's picture

Seems the Swiss banking/finacial system has been co-opted through control of the central bank. 

Muad'Grumps's picture

Mummy, look what I found in the 13F. The SNB doesn't just hold Chipotle and Apple. It's loooong gold miners! Here's the list:

AGNICO EAGLE MINES LTD 2,364,753  1.0% of the float

ALAMOS GOLD INC NEW 3,876 452,921SH

ASANKO GOLD INC COM 04341Y105 317,900SH

B2GOLD CORP COM 11777Q209 1,555,029SH

COMPANIA DE MINAS BUENAVENTU SPONSORED ADR 431,793

ELDORADO GOLD CORP NEW COM 284902103 7,777,200SHares

FIRST MAJESTIC SILVER CORP 262,100

FORTUNA SILVER MINES INC COM 228,400

FRANCO NEVADA CORP COM 3518    1,923,500SH  1.1% of the float

GOLDCORP INC NEW 9,010,200

HECLA MNG CO 619,237

IAMGOLD CORP 668,000

KINROSS GOLD CORP 12,256,635

KLONDEX MNS LTD 234,581

MCEWEN MNG INC 397,331

NEVSUN RES LTD 338,300

NEW GOLD INC CDA 856,762

NEWMONT MINING CORP 4,188,432

NOVAGOLD RES INC 384,700

PAN AMERICAN SILVER CORP 256,900

PRETIUM RES INC 251,248

PRIMERO MNG CORP 283,100

RICHMONT MINES INC 100,300

ROYAL GOLD INC 110,300

SANDSTORM GOLD LTD 206,980

SEABRIDGE GOLD INC 63,000

SILVER STD RES INC 188,100

SILVER WHEATON CORP COM 4,724,600

TAHOE RES INC 510,201

YAMANA GOLD 9,825,848

 

 

DirkDiggler11's picture

Huh, need to turn them on to EXK Endeavour Silver and GPL Great Panther Silver too, I wonder if the Swiss would listen to me talk my mining portfolio book ...

Lady Jessica's picture

Good son.  You wouldn't read about it, not even in the Orange Catholic Bible.

Boris Badenov's picture

Or Arbitrage aka Hedging. Remember Portfolio Insurance? Short the S&P 500 futures. Or short SPY instead!  

OR Create NEW shares of SPY by shorting them into existance...

Livermore Legend's picture

For those who have been Paying Attention and ARE Paying Attention:

From when I first wrote "SHORT SELLING" 2014 at a starting SHORT of 100, doubling down at 130 by the low just touched in Spring 2016, I've extracted about 20% Yield in less than 2 years.  I explained further how much Yield there is in Apple alone, in "EXTRAORDINARY POPULAR DELUSIONS C. 2014". (P. 47)

And Apple is My Favorite, because that is the Hardest Short of All.  Playing at the Hardest Level keeps Skill Optimal.  I won't even get into the Easiest and Safest Short of all, Berkshire Hathaway That's the "Freebie" for all of you who here and elsewhere who want to know how to sit this out Safely and Easily, while extracting Positive Yield.

You see, despite all the Rhetoric here and the Delusions of those in "Power" Central Banks only add to the Pool of "SUCKERS".

Notice how nothing Central Banks have done anywhere in the World stopped the 40 Solid Points High to Low Fall in Apple.

How many BILLIONS Per Point is that ? 

Two SEPARATE and Solid DOUBLE DIGIT Yield Plays 2012 2016 in just Apple.

Plenty of Yield, Opportunity and Liquidity.

The last Man at my level was Jesse Livermore; and I have Surpassed the Master; because he didn't and couldn't understand the Application of Time - the availablity of Knowledge was not sufficient in his Era, notwithstanding WD Gann.

I welcome Fools and Suckers of all stripes, especially those who can create money "Out of Thin Air".

As Point of Fact, the actions of Central Banks actually INCREASE the Opportunity for a Master Short Seller, because TIME, PRICE and VOLUME Never Lie, and encompass ALL ACTIONS OF ALL PARTICIPANTS.

Parenthetically, this is why ALL criticism about HFT is totally without merit.  HFT cannot have ANY impact on Positions taken based on TIME, PRICE and VOLUME.

Anyone taking Position based on what Central Banks Have Done, Will Do, or Can Do, only Demonstrates their utter incompetence.  In the end, all such Parties will find out "Mr. Market" is the Ultimate Arbitrator.

As I have said all along, "Elongation, Not Alteration".

The Bull Market in Real Talent is about to get started, as that Bear Market is Bottoming.

I intend to ride the "Mark-Up" to the Tune of Billions.

And for all of you "Top Dogs" the "Black Box" won't save you.

Sorry Paul, it's Time for you to get Back to Basics with the Master.  "Phd" is more aptly described in Markets as "Pedantic High Delusion".

So to all Suckers who Wish to Bet on Luck, Central Banks, and "Black Boxes", etc., Not Skill, I Salute You - and Thank You !

 

 

 

 

 

Squid-puppets a-go-go's picture

i must say you seem terribly good at sounding very important. I wish i could be quite as important as you.

LithiumWarsWAKEUP's picture

 First target buy is around 100 /fill the gap/area and then target is 120. Already broke intermediate short. Now to retest H's. Don't believe it? Ok.

Walken's picture

It's just US collecting its colonial tax. 

VWAndy's picture

 Putting your money where thier mouth is.

SoilMyselfRotten's picture

Bigger question, what CBs are NOT buying stocks now?

VWAndy's picture

 I can get you a real good deal on a bridge. Call me 1800 SUCKERS.

SoilMyselfRotten's picture

Don't forget Japan is said to be a top 10 holder in 90% of their market

Squid-puppets a-go-go's picture

yer - global nationalisation by stealth in 3...2....

SomethingSomethingDarkSide's picture

Called it! (in the way that it was inferred heavily already, just added a little math for realistic appeal)

Mercury's picture

Hopfully for them this will end better than their SELL Gold BUY Euro trade from a few years ago...

Doom Porn Star's picture

SNB = combinatiopn of hedge fund and counterfeiting operation.

ParkAveFlasher's picture

It's logically impossible to counterfeit what is already counterfeit.

N0TaREALmerican's picture
N0TaREALmerican (not verified) ParkAveFlasher Aug 4, 2016 12:19 PM

Hmmmm,  New and IMPROVED counterfeit? 

Doom Porn Star's picture

Talk to the jew with the ink cartridges...

ParkAveFlasher's picture

We even have counterfeit Jews, if you can believe that.

WOW101's picture

One more card added to the already overbuilt house in a bad neighborhood.

offwirenews's picture

One of the mandates of the snb? But seriously how is this allowed?

Consuelo's picture

 

 

It isn't a question of it being 'allowed', it is only a question of who directs whom to do what.

 

Ever heard the term: Vassal state...?   They're no longer just places for U.S. military bases - although that does help in the motivational context, certainly...

 

 

khaproperty's picture

SNB has bought too much Euro to save the Euro-currency from failing. So SNB has much too much potentially worthless Euros. To buy US stock is one of the best ideas to save some parts of that money. And there is a lot more to save.

RadioFlyer's picture
RadioFlyer (not verified) Aug 4, 2016 12:16 PM

I just want to know who has been PANIC BUYING CAT!

 

47 months of shite and still in business...

N0TaREALmerican's picture
N0TaREALmerican (not verified) RadioFlyer Aug 4, 2016 12:20 PM

It's a bet on future "shovel ready projects".   

Nobodys Home's picture

edit: my first double post

sudzee's picture

SNB had a few extra billions of US$ after the Iran deal. What else you going to put dollars in.

Lady Jessica's picture

It's really exquisite irony that for all the real democracy on the ground in Confoederatio Helvetica, it hasn't stopped their fiat being appropriated by the CB borg cabal for its nefarious ends.

 

Keltner Channel Surf's picture

Convinced these are the same clowns who screwed up IWM trading in the mid-1Q of 2015.  Bizarre, heavy-handed sudden buys of huge blocks, no attempt to work anything via algos.  Have no proof of any kind, but that's my instinct, and I'm sticking to it.  (Neutral, my ass).

Citizen_x's picture

Very true. Today's 1 HR NAS 9AM candle.
10AM candle. Rarely do we see that.
Yes...Holding above 115 QQQ, very
important, but WOW...Was looking for some
pause at 10:30, so I sat on my hands and
watched.

Another day in Algo-town/Alpo-town.

Keltner Channel Surf's picture

Buy-side puts so much on 'big data' days, fed-related or things like JOBS report, often weird pre-report hedging causes day or two prior to be hard to trade.  I'm sure by 8:29:45 it'll be clear as mud on Friday ...

Citizen_x's picture

Mud..

I think we sign up for it when
we took this job. Can't lose
money on the side line so...
we'll just wait for our set-ups.

Lately, this site is packed with
mud articles. Trading articles..
a few dozen posts, on average.
Trump, Hillary, DC/Obama...
hundreds of posts.

Stay sharp Captain. We'll geeter dunn.

back to basics's picture

And next month it will be the BoE buying, the month after that the BoJ, the month after that.......

 

 

 

 

 

 

Thebighouse's picture

So when they get fleeced, they will sell gold to cover the loss...........Down goes Frazier!