George Soros sells off gold ETF, scoops up energy and emerging markets

By Simone Foxman

Soros Fund Management, the firm that invests the fortune of billionaire George Soros, sold gold and bulked up on riskier sectors including energy and emerging markets during the third quarter.

The firm sold its position in SPDR Gold Shares worth $30.4 million as of June 30, according to a regulatory filing Monday. As of the same date, it increased its exposure to Japan, China and emerging markets exchange-traded funds. The firm added positions in WisdomTree Japan Hedged Equity Fund and iShares China Large-Cap ETF worth $34.1 million and $24.1 million, respectively. It also bought $91.9 million worth of iShares MSCI Emerging Markets ETF.

Soros moved out of gold after the metal rose 25 percent in the first half. His bearish statements about global economic events earlier this year signaled that investors might have cause to find safe havens. In June, he said that U.K. voters’ decision to leave the European Union would accelerate a financial crisis. In April, he compared China’s debt-fueled economy to the U.S. in 2007-08.

In the third quarter, gold fell 0.3 percent. Meanwhile, the emerging markets ETF jumped 9 percent. Soros also took new stakes in eight energy-related firms in the period, boosting the firm’s exposure to the sector from several million dollars to $132 million during the three-month period, according to the filing.

Soros bought 3.17 million shares in pipeline owner Williams Cos. worth $97.5 million as of Sept. 30. It also took smaller positions in California Resources Corp., Petroleo Brasilerio SA, and Rice Energy Inc.

Money managers who oversee more than $100 million in equities in the U.S. must file a Form 13F within 45 days of each quarter’s end to list those stocks as well as options and convertible bonds. The filings don’t show non-U.S. securities, holdings that aren’t publicly traded or cash.