During the last leg of 2016, with Donald Trump surprise victory, many asset managers had taken positions in financial stocks eyeing reduced regulations and potentially lower tax rates.
The firm that invests the personal wealth of billionaire investor and philanthropist George Soros, Soros Fund Management, has taken new positions in financial stocks in the fourth quarter.
Stocks in the financial sector had rallied once the outcome of the Presidential elections were announced and Donald Trump emerged victorious.
New York-based Soros Fund Management has disclosed that it has taken a $14.9 million position in Goldman Sachs as well as $3.9 million position in Bank of America.
Further, during the last three months of the previous year, Soros Fund Management made one of its biggest buys on the S&P Select Sector SPDR Fund – Financial Sector worth $72.6 million.
This move isn’t surprising, since a number of asset managers had acquired financial stocks during the final months of 2016 since Trump’s surprise victory pointed at the possibility of reduced regulations and potential tax cuts. A higher interest rate regime could also benefit the sector.
Significantly, although Soros sold his entire stake in Procter & Gamble, Trian Fund Management took a position of $3.5 billion in the company.