George Soros juggled up his Soros Fund Management holdings, adding strongly in the energy and oil sector, including Exxon Mobil (NYSE:XOM), Petroleo Brasileiro SA (NYSE:PBR) and Suncor Energy (NYSE:SU), while cutting back on exposure to the financials like Citigroup (NYSE:C) and The Bank of New York Mellon Corporation (NYSE:BK).
The Bank of New York Mellon Corporation and Altria Group (NYSE: MO) he liquidated positions in altogether.
Somewhat surprising and probably regretfully in hindsight, he cut back his position in SPDR Gold Trust (NYSE:GLD).
Soros mentioned earlier in the year that gold was a bubble ready to burst, but he misread the situation, and he continues to misread it, as gold continues on its upward climb.
This isn't to say there won't be corrections in the gold market, but the bubble situation isn't close to appearing yet, as it will take clueless people entering the gold market who don't understand the underlying fundamentals to create a gold bubble.
With all the money floating out there, printed by central banks around the world, there is little to keep gold from continuing to go up in price, as well as well as to protect their assets in the ongoing economic hardships we're going to face, as Europe continues to crumble and China is almost sure to cut back on exports because of its battle against inflation through increasing interest rates and clamping down on excesses in its property market.
The stake in Exxon Mobil by Soros Fund Management was increased by 80 percent, while the stake in Petroleo Brasileiro SA (NYSE:PBR) had 18 percent added to it.
Their position in SPDR Gold Trust was cut by 9.6 percent.
Showing posts with label Bank of New York Mellon Corporation. Show all posts
Showing posts with label Bank of New York Mellon Corporation. Show all posts
Monday, May 17, 2010
Thursday, September 25, 2008
Bank of New York Mellon Corporation Says Commodity Investors Need to be Highly Selective Until Global Economy Recovers
Sept 25, 2008 /PRNewswire-FirstCall via COMTEX/ -- Investors will need to be highly selective in their allocations to commodities until the global economy recovers, which is expected to occur by 2010, according to a forthcoming white paper from The Boston Company Asset Management (TBCAM), an investment boutique within BNY Mellon Asset Management.
"We would maintain a modest allocation to commodities at this time, and then aggressively increase our positions at the first sign of a recovery," said Robin Wehbe, an equity research analyst at TBCAM. "We believe commodities are poised to hit new highs once a recovery begins to gather momentum."
Until the recovery, TBCAM would look closely at select commodities that require particularly long lead times to add capacity or face challenging geological hurdles. As examples, the TBCAM white paper noted that iron ore used in the production of steel and potash, a fertilizer nutrient, require tremendous investments to make extraction economical. Ramping up production for these two commodities can take seven years or longer.
"Focusing investments on commodities with tight fundamentals and producers with low-cost positions is the right approach for these markets," said Wehbe. "Companies with low-cost positions will enjoy an extended period of above-normal profitability and cash flow."
The Boston Company Asset Management, a BNY Mellon Asset Management investment boutique, provides investment management services for corporate, public, mutual funds and Taft-Hartley retirement plans, endowments and foundations.
The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has more than $23 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $12 trillion in outstanding debt. Additional information is available at bnymellon.com.
SOURCE The Bank of New York Mellon Corporation
BNY Mellon
Copyright (C) 2008 PR Newswire. All rights reserved
"We would maintain a modest allocation to commodities at this time, and then aggressively increase our positions at the first sign of a recovery," said Robin Wehbe, an equity research analyst at TBCAM. "We believe commodities are poised to hit new highs once a recovery begins to gather momentum."
Until the recovery, TBCAM would look closely at select commodities that require particularly long lead times to add capacity or face challenging geological hurdles. As examples, the TBCAM white paper noted that iron ore used in the production of steel and potash, a fertilizer nutrient, require tremendous investments to make extraction economical. Ramping up production for these two commodities can take seven years or longer.
"Focusing investments on commodities with tight fundamentals and producers with low-cost positions is the right approach for these markets," said Wehbe. "Companies with low-cost positions will enjoy an extended period of above-normal profitability and cash flow."
The Boston Company Asset Management, a BNY Mellon Asset Management investment boutique, provides investment management services for corporate, public, mutual funds and Taft-Hartley retirement plans, endowments and foundations.
The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has more than $23 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $12 trillion in outstanding debt. Additional information is available at bnymellon.com.
SOURCE The Bank of New York Mellon Corporation
BNY Mellon
Copyright (C) 2008 PR Newswire. All rights reserved
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