Fresco passed along this little tidbit reported by StreetInsider.com. David Einhorn’s Greenlight Capital hedge fund issued its 13F for the quarter ended 3/31/09. Fearing inflation, Greenlight boosted its exposure to gold through two ETFs. The fund bought 514,000 shares of SPDR Gold Shares (GLD) to raise its stake to 4.2 million shares. StreetInsider says this is Greenlight’s biggest position and valued at $385 million. The fund maintains its stake of 3.2 million shares in Market Vectors Gold Miners ETF (GDX). For a full report on Greenlight’s stock holdings check out StreetInsider.com.
Inflation has to go up, no? I mean really, it can’t get much lower. Gold is considered a classic hedge against inflation, so if people anticipate inflation rising significantly, gold is a good place to be.
The Wall Street Journal says GLD is seeing the largest money flows for buying on weakness. Today, GLD is down $1.39, or 1.5% to $90.17.
Posted in Business, Commodities, ETFs, Exchanges, State Street, Stock Market, stocks, Wall Street
Tagged David Einhorn, GDX, GLD, gold, Greenlight Capital, Market Vectors Gold Miners ETF, SPDR Gold Shares, StreetInsider.com, WSJ
StreetInsider.com recommends traders pay attention to the Market Vectors Coal ETF (KOL) in light of Alpha Natural Resources (ANR) sparking what Reuters calls a “wave of consolidation in the fragmented coal-mining industry.”
Alpha offered to buy Foundation Coal Holdings (FCL) for $1.5 billion, a 41% premium to Monday’s close. in an attempt to create the third-largest U.S. coal producer. The companies said the strategy was to benefit from an expected rebound in demand from steelmakers and power plants for coal.
StreetInsider says the ETF could be extremely volatile because it’s a stock for stock deal.
Posted in Business, Commodities, ETFs, New York, Stock Market, stocks, Wall Street
Tagged Alpha Natural Resources, ANR, coal, FCL, Foundation Coal Holdings, KOL, Market Vectors Coal ETF, steel, StreetInsider.com, trading, Van Eck