George Soros expressed his bullishness on the financial sector of the European region during an interview with German magazine Der Spiegel.
According to the billionaire investor, his investment team aims to generate a lot of profit in the region. He said, “I believe in euro, therefore my investment team is looking forward to make a lot of money soon in Europe by, for example, pumping money in banks which urgently need capital.” He emphasized that the European region currently needs such types of private investment.
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During the interview, Soros said his team is also considering investing in Greece, considering that the economic situation in the country is better. According to him, “The question now is whether one can earn money there on a sustainable basis. If that is possible we will invest.”
Criticism on Germany’s policy
Soros once again criticized the policy of Germany in its effort to save the euro. According to him, the austerity measures implemented by Chancellor Angela Merkel in Europe were wrong and worsened the crisis. He noted that the financial markets in the European region currently calmed down, but a sustainable recovery is not yet present.
“I fear that the euro zone could experience a long phase of economic stagnation similar to Japan’s in the past 25 years,” said Soros.
Retired from investment business
He emphasized during the interview that he is now retired from the investment business. He is the founder of the Soros Fund Management. According to him, the investment team of the fund is solely responsible for its investment policy. Last year, its Quantum Fund was recognized as the most successful hedge fund of all time after generating $5.5 billion profit. Soros said the earnings of the fund go to his foundation, which is engaged in humanitarian and political projects worldwide.
Soros Fund doubled downside protection
During the fourth quarter, his fund doubled its downside protection by increasing S&P 500 (.INX) put in its portfolio by 154% based on its 13F filing with the Securities and Exchange Commission (SEC). Soros Fund Management acquired stakes in Citigroup Inc (NYSE:C) and JPMorgan Chase & Co. (NYSE:JPM), an indication that he is confident in the markets.
His investment management exited its position in Chevron Corporation (NYSE:CVX) and cut his holdings in Herbalife Ltd. (NYSE:HLF) and J.C. Penney Company, Inc. (NYSE:JCP) during the quarter.