2014-03-30 06:56:05 - Laureate reports although risk remains for emerging markets, George Soros Put Option position is not uncommon for portfolio manager to impose.
Laureate BVI reports the latest 13F filed by Soros Fund Management, the family office of George Soros has increased their hedging position by 154% Q/Q.
Laureate BVI CEO Peter Tasca says, “We often recommend the use of Put and Call Option strategies, it not only allows the investor the ability to protect profits but when you have a market neutral fund, you can realize substantial gains if the market were to drop.”
Soros’ Put Options grant him the right to sell stock at a set price for a limited time. It rises in value as the underlying stock falls relative to the strike price, thus creating a hedge in the portfolio.
Soros Fund Management currently has over 200 positions in their portfolio and
reported a record US$5.5 billion profit in 2013.
According to Tasca, “We have analyzed the trading pattern of Soros and this US$1.3 billion hedge is tied to 7.1 million shares of SPY, which is an increase from his previous position of 2.8 million shares of SPY. Our estimates have the market appreciating this year and we suspect Soros is moving along the same direction but with caution.”
Laureate reported 2014 estimates for equities at 15-20% upside return, but also cautioned investors against increased risk and speculation in the market.
For the month of February Laureate issued several buy and sell recommendations from stocks to bonds citing increased risk in the market.
Tasca states, “Too many managers now focus on risk control at the expense of returns, our trading platform is based trading tactically so we profit in nearly any situation, without paying excessive premiums for portfolio protection.”
About Laureate Trust
Laureate Trust is a leading financial services company with a proud reputation for adapting to marketplace trends and delivering results to clients worldwide. The proven advisory teams combine product and sector expertise with access to global capital to offer exceptional results in any market environment. In 2013 this multiple platform strategy returned +23.01% net of all fees.
Laureate works with financial advisers and family offices through its Referral Fee Programme that pays 2% commission of the initial deposit and then a management fee for the life of the account. “We want our partners to benefit from every bit of success they help us generate” said Tasca.