Soros Cashes Out Of Gold ETF ‘GLD’

His and other hedge funds dissolved positions in the third quarter ahead of the elections.

Reviewed by: Marcy Nicholson
Edited by: Marcy Nicholson

New York (Reuters) – Soros Fund Management LLC dissolved its shares in the world's biggest gold exchange-traded fund in the third quarter of 2016, ahead of the U.S. presidential election, a U.S. Securities and Exchange Commission filing showed this week.

By the end of September, billionaire financier George Soros' fund eliminated its position in the SPDR Gold Trust (GLD) as bullion prices briefly rose to the highest in more than two years, having held 240,000 shares worth $30.4 million in the second quarter.

Soros more than doubled its shares in miner Barrick Gold Corp to 2.85 million shares worth $50.5 million, from 1.07 million shares in the second quarter, the 13F filing showed.

Paulson Hold Position Steady

Paulson & Co., led by longtime gold bull John Paulson, held its stake in GLD unchanged at 4.78 million shares. Its value fell to $600 million by the end of the third quarter from $603.9 million in the second quarter.

Inflows into GLD increased by more than 3% to a three-year high in the third quarter as higher gold prices typically attract investment money to bullion, which is often seen as a hedge against inflation.

In July, spot gold prices extended the steep 25% gains made in the first half of 2016 to peak at $1,374.91 an ounce, the highest since March 2014. Prices eased nearly 3% by the end of September to $1,315.80 as expectations increased for the U.S. Federal Reserve to raise interest rates in December.

Spot gold prices have since fallen to a 5 ½-month low of $1,211.08.

In a 13F filing earlier this month, CI Investments, an investment manager of Toronto-based CI Financial Corp., reported that it sharply cut its stake in GLD to 62,719 shares worth $7.88 million, from 9.4 million shares worth $1.19 billion at the end of June, when it was the second-biggest shareholder.

Jana Partners, led by activist investor Barry Rosenstein, remained out of gold after dissolving its share stake in GLD in the second quarter.