Interesting Article Complied from Web
If media reports are to be believed, billionaire investor George Soros has raked in more than $18 million from a single $1 billion punt on the Australian dollar ahead of Tuesday’s Reserve Bank of Australia rate cut.
“Best of all, it appears the 82-year-old American pulled off the deal three times, all with difference foreign exchange brokers in Asia, for a tidy profit of almost $US60 million,”
Reports this morning have George Soros making a cool $60 million on his Australian dollar short in less than two days.
I’ve tried to piece together the various snippets I’ve heard.
He started the short building from just above 1.0300 on Monday and added around 1.0280.
A short time later the rumours started.
At 0430GMT on Tuesday the RBA cut its benchmark interest rate, the first move since 2012. AUD/USD slipped from around 1.0240 to below 1.0200, and thats where Soros started scaling his purchases, from just below 1.02 to 1.0165 (and thereabouts):
Best thing is, it appears he made 3 similar trades. With a trader in Hong Kong taking one of the orders, another in Singapore, and one more. The trades netted around $18 million on each, for a total reward of about $60 million.
OK, just a word of caution. Soros and his organisation are highly secretive. This is the scenario I’ve put together from what I’ve heard around the place and I don’t imagine I’ve got all the details correct. But it does give an idea of how he operated.
Oh, and $60 million is a nice return, but its pocket change for Soros, he’s has made over $1 billion being short yen over the past months!