There investors all over the place who have made a pretty penny by mimicking the trading activities of George Soros. Many are wondering if his latest trade is something that they should imitate for their own interests. This trade has been somewhat controversial among the investing community. You can make an argue for it and against it using facts. The trade is even more interesting because of the fact that the managing director at the Quantum Fund rarely makes trades anymore.
Soros recently sold the stocks that his investment group owned in two different biotechnology companies and one biotechnology fund. The fund is the NASDAQ Biotech Index Fund and the two companies are Novavax and Gilead Sciences at http://latino.foxnews.com/latino/politics/2016/03/10/billionaire-smackdown-george-soros-funds-effort-to-stop-trump-mobilize-latinos/. Novavax produces some of the most high profile vaccines in the industry. Giliead Sciences is well-known for developing and producing medicines used to fight Hepatitis C in patients.
Soros sold these holdings because he fears that the market is going to experience losses because of the backlash against the rising cost of prescription medication. Pharma companies do not have a good image in the public eye as of late because of these rising prices. Many people agree with George Soros and are following suit. There is a growing faction of people that think that maybe he jumped the gun a little early on this trade and are sticking to their guns.
Those that say he jumped to early on the sale are basing this opinion around the presidential election. Many of them expect Hillary Clinton to be elected. She has promised her constituents sweeping reform for health care companies. They think that these reforms will make the market bounce back in the coming years. The health care industry does have a way of making money in the long run.
Soros has made a legendary career out of betting against certain markets. Soros’ first famous trade of this sort came in 1992 when he bet big against the British Pound. When it crashed, his fund made over $1 Billion. He also made a lot of money when he made a similar bet against the housing market before it crashed in America late last decade.
There are good reasons for people’s opinion to go either way on this issue. The market could bounce back and show huge returns again, but George Soros does have a long reputation of being right when it comes to these sorts of things.
Soros has been largely retired over the last decade. He still runs the fund, but lets others handle the day to day operations. He has stopped into make a couple of big blockbuster trades. This is just the latest big trade he has made that specifically bets against a specific market sector.