Short-term gold trading strategy
The fund also holds a significant amount of physical gold, which is not reported to the SEC.
ETFs like SPDR are backed by physical gold held by the issuer and are traded on the market like stocks. They allow investors to bet on gold without buying gold at the spot price.
Greenlight's increased position in gold appears to be a shift to a hedging strategy. The fund also lowered the weighting of its two largest stocks, home builder Green Brick Partners and coal miner Consol Energy.
In his third quarter letter, fund founder David Einhorn said markets were underestimating geopolitical instability.
The view that geopolitical risks should be ignored may be correct, except when wrong. We think we're at a stage where that view is wrong. If we are right, the current extreme levels of geopolitical tensions will send stocks lower in no time.”
ETFs like SPDR are backed by physical gold held by the issuer and are traded on the market like stocks. They allow investors to bet on gold without buying gold at the spot price.
Greenlight's increased position in gold appears to be a shift to a hedging strategy. The fund also lowered the weighting of its two largest stocks, home builder Green Brick Partners and coal miner Consol Energy.
In his third quarter letter, fund founder David Einhorn said markets were underestimating geopolitical instability.
The view that geopolitical risks should be ignored may be correct, except when wrong. We think we're at a stage where that view is wrong. If we are right, the current extreme levels of geopolitical tensions will send stocks lower in no time.”
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TP: 1970
SL: 1992