George Soros has been jettisoning different investments lately. Recently, he bet against the Asian markets and moved a large portion of his company’s holdings into precious metal like gold and silver. His latest trade has other investors wondering if they should do the same thing or stick to their guns when it comes to the biotechnology market. He has sold basically all of the Quantum Fund’s holdings in the biotechnology market by selling stock in two different companies in that market and one index fund.
It stands to reason that some people would want to follow his actions. He is considered by many to be the most successful hedge fund manager in the history of the stock market. George Soros consistently brings his investors some of the best returns on the market. He often averages returns of 30%. This incredible. It is also important to note that his fund is big enough that its actions can affect the market as a whole if they are drastic enough. This is why so many investing experts always have their eye on the Quantum Fund’s actions on the market.
The NASDAQ Biotech has performed the worst of the three holdings that Soros sold. This is mostly due to the public perception of many of the companies in the fund. The public opinion of this fund has dwindled in the face of the rising costs of prescription medication. Some say that this is a good reason to sell. Others think that the fund is due to make a turnaround after the next election due to the fact that Hillary Clinton is promising industry-wide reform.
Novavax is a top producer of vaccines in the United States. Gildean makes medicine to treat Hepatitis C. Both of these companies are awaiting trials on upcoming medications.
So, should people follow Soros or not? Those that think the presidential election will turn things around could be right. You also can’t fault those that want to follow in the footsteps of Soros either. George Soros is one of the most successful people in the history of the stock market when it comes to predicting when certain market are going to experience down cycles. He predicted the collapse of the British pound in 1992.
The trade sticks out even more because Soros has not been very active with his fund in recent years. He has basically been in retirement for at least the year. He had the holdings for just one quarter. It is going to be interesting to see what Soros decides to do next.