According to a report in the Wall Street Journal, billionaire investor and philanthropist George Soros lost approximately a billion dollars following President-elect Donald Trump’s victory last November. Soros, who donated generously to the Clinton campaign, had bet that a Trump victory would lead to a sustained depression in market performance. However, the markets have responded with enthusiasm to Trump’s election in hopes that he would cut taxes and red tape. Soros also has investments in major technology companies, such as Amazon.com Inc. (AMZN) and Netflix Inc. (NFLX), whose stock prices fell following the President-elect’s shock victory. (For more, see also: How Did George Soros Get Rich?)
In contrast, Stanley Druckenmiller, a one-time Soros protegé, seems to have moved ahead of his old boss. The Wall Street Journal report states that Duquesne Family Office LLC, Druckenmiller’s firm, saw “gains of 10% in 2016.” This is because Druckenmiller, who has voted for Republican candidates in the past, predicted that the markets would swoon initially but rally later on a Trump victory.
This is exactly what happened. The markets were down on the evening on Trump’s victory. However, they rose by approximately 1.5% the next day and were up by 5% by the end of the year from that night. Druckenmiller’s bearish stance on bonds and his bullish take on the dollar versus the euro also contributed to his profits, according to the Journal. (For more, see also: Why Druckenmiller Sold His Gold After Election.)
To be sure, it has not been all losses for the Soros Fund Management’s performance. The overall portfolio of his firm, which includes holdings in sectors that have rallied since Trump’s victory (such as financials) helped shore up the performance of his portfolio to a 5% increase, the Journal reports. It must have also helped that Soros cut his stake in the SPDR Gold Trust ETF (GLD) in August. Gold prices, which were expected to rise following a Trump win, dropped sharply after the November elections. The SPDR Gold Trust has fallen by 6% since last election day. Liberty Broadband Corporation (LBRDA), which was Soros’ biggest buy last year, has also rallied by 12.5% since election night.